Tesla, Inc. received a vote of confidence from Cathie Wood’s Ark Investment Management last week, as the investment firm swooped in to buy shares after a stock price dip.
Three of Ark Invest’s actively managed exchange-traded funds (ETFs) purchased Tesla shares on Friday, countering a nearly 4% drop in the stock price earlier in the session. While Tesla’s stock did recover some losses, it still closed Friday down 1.15% at $170.83. The buying activity from Ark Investment Management is significant, especially considering the concerns about a potential first-quarter sales shortfall.
The decline in Tesla’s stock price was likely a reaction to a Bloomberg report claiming that Tesla asked its Giga Shanghai factory to reduce workweek shifts from the usual 6.5 days to a 5-day schedule. This news spooked investors who were already worried about the company’s sales performance in the first quarter.
Ark Investment Management purchased Tesla shares through three of its ETFs on Friday:
1. Ark Innovation ETF (ARKK): 90,915 shares
2. Ark Next Generation Internet ETF (ARKW): 20,416 shares
3. ARK Autonomous Technology & Robotics ETF: 5,077 shares
These purchases totaled 116,408 shares, valued at approximately $19.89 million. This is not the first time Ark has shown confidence in Tesla during a stock price dip. On March 14, Ark had bought 216,682 Tesla shares worth $35.21 million amidst prior stock weakness.
While Ark showed confidence in Tesla, the investment firm continued to trim its holdings in cryptocurrency-related companies like Coinbase Global, Inc. and Robinhood Markets, Inc. This move comes after a cryptocurrency market cool-off since mid-March, following a strong uptrend in the previous months.
Despite the cool-off in the cryptocurrency market, Ark’s spot Bitcoin ETF, the ARK 21Shares Bitcoin ETF, launched in January, has gained roughly 37% since its listing. On Friday, Ark sold 217,610 Coinbase shares valued at approximately $55.60 million and 314,789 Robinhood shares valued at approximately $5.76 billion. Coinbase remains ARKK’s top holding, with a value of approximately $830.98 million.
Overall, Ark Investment Management’s vote of confidence in Tesla amidst stock price fluctuations and its strategic trimming of holdings in cryptocurrency-related companies reflect the investment firm’s dynamic approach to managing its portfolios. Investors will be watching closely to see how these moves play out in the coming weeks.
