Tesla TSLA sank more than 8% in Thursday's stock market, giving up key levels, in the wake of second-quarter earnings and CEO Elon Musk's conference call comments. However, Cathie Wood and Ark Invest saw that as an opportunity to buy more of their favorite stock.

Tesla's market cap fell below $1 trillion, but it still reflects investors' assumptions of enormous future growth.

US stock market today saw mixed action as the Dow Jones dropped while the S&P 500 and Nasdaq inched higher, driven by strong Alphabet earnings and cautious outlook from Tesla. Alphabet jumped over 3% after boosting its AI investment,

"Tesla is crossing the chasm to autonomy while absorbing slower volume, EV incentive elimination, tariffs and investing in new initiatives that may not make margins for years," Morgan Stanley analyst Adam Jonas, a longtime Tesla bull, wrote early Thursday.

But if you just listened in on the company’s call with analysts, you would have no idea why. For an earnings call, there was zero talk of, um, earnings. And the overall message from Tesla’s top brass seemed to be: We are a robotics and AI company, and, someday soon, it’s going to be awesome.

Meanwhile, another artificial intelligence (AI)-powered transportation stock has rocketed higher this year, partly due to its emerging autonomous driving business. Lately, the stock seems to go up when Tesla goes down and vice versa. Is it the ultimate threat to Tesla's autonomous driving ambitions?

Trump’s tariffs and recent trade deals continue to affect global markets. Follow along for live updates on the Dow, S&P 500 and Nasdaq.

Tesla is scheduled to report its second-quarter results after the market closes on Wednesday, with investors expecting the electric vehicle maker's stock could make a sizable move.

Discover why Tesla, Inc.'s autonomy growth in 2027 supports a 50% 18-month return. Click for my updated look at TSLA stock post Q2 earnings and why I'm bullish.