TeslaIt rose more than 3% before trading, after it was praised by CEO Katherine Wood (Cathie Wood) of ARK investment management company, and ARKK increased its stake in the company's 115000 shares.

By the close of trading on Tuesday, Tesla, Inc. shares had fallen for four days in a row, erasing gains since the start of the year and briefly falling below where they were when they were included in the S & P in December. The stock fell as much as 13 per cent to $619 in early trading on Tuesday, the biggest intraday decline since Sept. 8, before recovering most of its losses to close down 2.2 per cent at $698.84.

Just as Tesla, Inc. fell 13 per cent, Katherine Wood's Ark Investment Management (Ark Investment Management) significantly increased its position in Tesla, Inc. shares.

Last week, Wood said he was still bullish on Tesla, Inc. and continued to buy shares in the electric car maker. She believes Tesla, Inc. will eventually decide to enter the ride-sharing market, a more profitable business than electric cars.

Wood has said that she often buys or increases her positions on days when her favorite stocks fall significantly. "We are seen as liquidity providers, which means that when people are selling, we will buy, and when people are buying, we are likely to make a profit," she said.