Tesla Finds Buyer In Cathie Wood As Stock Goes Haywire Amid Elon Musk's Twitter Deal, Share Sale

Benzinga2022-11-10

ZINGER KEY POINTS

  • ARK Investment Management bought over 39,000 shares of the EV-maker at an estimated valuation of over $7 million.
  • ARK also bought over 148,000 shares of Zoom at an estimated valuation of over $10 million.
  • Wood's funds offloaded over 323,000 stocks of NVIDIA at an estimated valuation of over $44 million.

As shares of Tesla Inc declined for the fourth consecutive session on Wednesday, Cathie Wood-led ARK Investment Management bought over 39,000 shares of the EV maker at an estimated valuation of over $7 million.

The purchase comes as Tesla shares faced intense selling pressure this week. Shares of Tesla closed over 7% lower on Wednesday after CEO Elon Musk sold 19.5 million shares, estimated to be worth nearly $4 billion, between Nov. 4 and Nov. 8.

The stock had plunged over 5% on Monday and nearly 3% again on Tuesday after a recall of 40,000 vehicles due to issues with electronic power assist steering.

However, ARK has been a big proponent of EVs. In its weekly newsletter, its analysts said EVs would capture a much higher market share than previously expected.

On Oct. 20, ARK bought over 66,000 shares of Tesla at an estimated valuation of over $13 million. The EV-maker is the second largest holding of the company’s flagship fund, the ARK Innovation ETF (ARKK), with a weight of 8.43%.

Other Buys: ARK also bought over 148,000 shares of Zoom Video Communications Inc at an estimated valuation of over $10 million. The company also loaded up on shares of Roblox Corp and Coinbase Global Inc at an estimated valuation of over $10 million each.

Major Sale: ARK offloaded over 323,000 stocks of chipmaker NVIDIA Corporation at an estimated valuation of over $44 million. Shares of the company have gained over 18% in the last month.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

Leave a comment
3