Ark Innovation ETF, the company’s flagship fund, snatched 27,556 shares Monday, after grabbing 27,799 shares Thursday.
Cathie Wood’s Ark Investment Management took advantage of Tesla’s TSLA recent decline to buy more shares of the electric vehicle maker.
Ark Innovation ETF (ARKK) – Get ARK Innovation ETF Report, the company’s flagship fund, snatched 27,556 shares Monday, after grabbing 27,799 shares last Thursday. Adding those shares together, the total was recently worth $50.9 million with Tesla recently trading at $920 a share.
ARK Next Generation Internet ETF (ARKW) – Get ARK Next Generation Internet ETF Report also bought 5,683 Tesla shares Thursday, recently worth $5.2 million.
These purchases represent Ark’s first acquisition of Tesla stock since June 2021, CNBC reports. In November and last month, Ark sold Tesla stock to take profit, with Wood stressing that she still likes the stock. It’s the No. 1 holding in Ark Innovation, accounting for 8.2% of the $13 billion fund.
Wood said in September that her base case for Tesla is $3,000 per share. “Our estimate for Tesla’s success has gone up,” she told Yahoo Finance. “The main reason for that is their market share. Instead of going down from year-end 2017 to today, it has actually gone up fairly dramatically.”
Tesla slid 31% from Jan.3 to Jan. 27, as technology stocks got hammered by rising bond yields and anticipation of Federal Reserve interest-rate hikes. But the stock has rebounded 11% since then. Credit Suisse upgraded Tesla Monday.
Wood has said recently that declines in tech stocks have created buying opportunities.
“The important thing to keep in mind is the long-term horizon that we invest in,” Wood said in a presentation to investors last week. “We have a five-year horizon. I’ve never seen innovation on sale like it is today.”
