This may be the most common crossover since Batman vs. Superman.
Cathie Wood is one of the most high-profile investors currently active, with her Ark Investment Management () - making waves on the market.
One of Ark's biggest bets has been on Tesla () - a utility vehicle manufacturer.
Tesla's excellent performance, including its market cap, has boosted Wood and Ark, which has surpassed the $1 trillion valuation mark.
Ark continues to have a lot of room to run for Tesla and has recently increased its target price for the company in 2026.
The Tesla stock is expected to trade at $4,600 in 2026, according to Management. This is about five times the price at which the stock of Elon Musk's company is currently trading.
Now, Wood and Ark have put their money where their mouth is and are appuying Tesla and its mercurial CEO Elon Musk.
While Tesla remains the crown jewel, Musk's investment portfolio has just grown as Twitter agreed to his $44 billion takeout offer.
While some institutional investors may be dissatisfied with Musk's posting a significant potential flaw on his plate, don't count Cathie Wood among the critics.
Cathie Wood praised Musk's most recent initiative.
Elon Musk is on course to take over Twitter in a form of a dream that has just arrived.
Musk, as a result of the fact that he went on Twitter to celebrate.
"Liberty is the foundation of a functioning democracy, and Twitter is the digital town square in which debates occur. "
TheStreet Recommends
"I also want to make Twitter better than ever before by adding fresh features to the product, making the algorithms open source to increase trust, defeating spam bots, and authenticating all people.
Cathie Wood's reaction was simple, but it reveals her trust in Musk.
However, it's also a slight downfall from her remarks just two weeks ago.
During an interview with CNBC's Bob Pisani on Tuesday, Wood said on Twitter that, with or without Musk taking on the board of directors, it will face "a lot of management stress."
Wood said Twitter should strive to balance its advertising model with the need to police content on the self-proclaimed "global town square."
As of December 31, Ark Investment Management was the top investment company in the industry. Tesla is the inventor of electric vehicles.
ARKK Investment Is Nearing a 2-year low
At last check Tuesday morning, Ark Innovation ETF, Wood's flagship fund, is approaching a two-year low and is down another 4.6 percent.
The ETF has decreased by over 60% in the past 12 months.
According to a S3 Partners report, short sellers might signal that the decline is approaching over.
Short interest in the fund has decreased in market value for $305 million over the past 30 days, as the ARKK has fallen.
"If their conviction was still as strong as previously, they would have kept their short exposure unchanged or increased it," said Ihor Dusaniwsky, head of predictive analytics at S3. "By letting it decrease, they are allowing the market to lessen the total value of their short wagers."
According to S3, short activity across Ark's ETF group has decreased on net this year by $692 million, according to reports, after reaching $2.8 billion in 2021.
