ZINGER KEY POINTS
Monday, Mizuho Securities downgraded Tesla to Neutral citing disappointing near-term EV market outlook.
Tesla is the worst-performing S&P 500 stock so far this year, following by Boeing.
Ark Investment Management, led by Cathie Wood, continued to buy Tesla Inc. shares on Monday, even though the stock had already rebounded and outperformed the broader market.
What Happened: Through its two ETFs, Ark Innovation ETF and ARK Next Generation Internet ETF, Ark bought 163,421 Tesla shares, valued at $28.21 million.
Tesla ended the day up 1.05% to $172.63, while the S&P 500 fell 0.31%, according to Benzinga Pro data.
This gain came despite a downgrade from Mizuho Securities‘ Vijay Rakesh, who switched the stock from Buy to Neutral due to concerns about the near-term electric vehicle market. Some Tesla bulls, including Gary Black, have also expressed concerns about a potentially weak first-quarter deliveries report.
Last Friday, Ark purchased about $20 million worth of Tesla shares. The stock could see some volatility in the shortened trading week as traders anticipate the first-quarter deliveries, likely due on April 2nd.
Other Major Buys:
Ark also added to its holdings in some of its favorite stocks, including Roku, Inc. and Roblox Corp. and also accumulated more of Moderna, Inc.. They’ve been on a Moderna buying spree since March, anticipating upcoming catalysts for the COVID-19 vaccine maker.
Here’s a breakdown of their other purchases:
Roku: 76,893 shares ($4.97 million)
Roblox: 740,115 shares ($27.13 million)
Moderna: 12,893 shares ($1.42 million)
Ark’s flagship ARKK ETF closed Monday up 1.70% at $50.25.
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