Key Points
- Cathie Wood's Ark Invest has invested another $19 million in Tesla stock.
- Two of Wood's exchange-traded funds purchased over $19 million worth of Tesla shares on Tuesday.
- Tesla missed its delivery targets for the previous 12 months and the fourth quarter of 2022.
- Wood remains bullish on the company and believes Musk is determined to bring full autonomy to vehicles by 2024.
- Tesla's stock fell 65% over the course of last year and plummeted 40% in December alone.
Cathie Wood´s Ark funds have invested another $19 million in Tesla stock after the electric vehicle (EV) maker missed its delivery targets.
It is worth noting that investing in individual stocks carries inherent risks, and it is always important for investors to thoroughly research and consider their options before making any investment decisions. It is also essential to diversify one's portfolio and not rely too heavily on any single stock or sector.
Cathie Wood is known for her bullish stance on technology and has been a vocal proponent of electric vehicles, particularly Tesla. In the past, Ark Invest has made significant investments in Tesla stock and has consistently held a positive outlook on the company.
On Tuesday, two of Wood's exchange-traded funds purchased shares worth over $19 million. The flagship Ark Innovation ETF bought 144,776 shares in Elon Musk's automaker,(TSLA) while its Ark Autonomous Tech & Robotics fund bought 31,336, for a combined total of 176,112.
Tesla stock now makes up 6.55% of Ark Innovation's holdings, worth more than $380 million. Ark Innovation was up 1.2% in premarket trading on Wednesday, but is trading at five-year lows as Tesla suffers its worst decline since going public in 2010.
Tesla's shares fell over 12% on Tuesday after the company announced that it had delivered fewer cars than expected in the previous 12 months. It also missed forecasts for the fourth quarter of 2022, delivering 405,000 cars compared to the estimated 430,000. These purchases add to Wood's dip-buying spree that saw Ark invest roughly $88 million in Tesla stock in the fourth quarter of last year.
The fund manager remains bullish on the company as she believes Musk is determined to bring full autonomy to vehicles by 2024.
Tesla's stock (TSLA) fell 65% over the course of last year and plummeted 40% in December alone. The automaker had a difficult 2022 and has offered discounts on some of its most popular models as it faced setbacks such as tighter restrictions on EV tax credits, a slowdown at its Shanghai factory and a worrying slump in demand. Some Tesla shareholders are also concerned that Musk's acquisition of social platform Twitter has taken his focus away from the carmaker.
Wedbush analyst Dan Ives has said that Musk is using Tesla as "his own ATM machine to keep funding the red ink at Twitter" after the CEO disposed of stock. However, Musk has blamed Tesla's problems on the broader macroeconomic climate and the Federal Reserve's aggressive monetary policy, as rising interest rates deter investors from growth stocks. In premarket trading on Wednesday, Tesla shares were up almost 1% at $109.04.
