Cathie Wood Is Back on the Tesla Bandwagon. She's Buying the Dip

Dow Jones2022-06-09

ARK Invest's Cathie Wood is back on the Tesla bandwagon -- in a big way.

Two of her exchange-traded funds scooped up Tesla (ticker: TSLA) shares on Tuesday: ARK Next Generation Internet ETF (ARKW) bought 1,107 shares and ARK Autonomous Technology & Robotics ETF $(ARKQ)$ bought 1,893 shares.

ARK Invest has bought more than 55,000 shares of the electric-vehicle maker since May 23, Bloomberg reported.

In April and early May, Wood sold roughly 37,000 shares of Tesla, which was having a tough time. She has insisted, though, that she is still bullish on the stock.

On Wednesday trading, the stock was up 1.25%; shares are down 29% for the year. Manufacturing slowdowns in Shanghai because of Covid-19 lockdowns and concerns about CEO Elon Musk's proposed acquisition of Twitter (TWTR) have weighed on shares.

It isn't a big surprise that Wood is buying the Tesla dip. She has a 2026 price target of $4,600, though the stock fell from its top spot in the flagship ARK Innovation ETF (ARKK) last month after the spring selloffs. Still, Tesla makes up 8.32% of the fund, behind only Zoom Video Communications (ZM) at 9.7%.

ARK Invest has had its own blowups lately. Wood's funds have been hammered this year by rising bond yields and a broad downturn for technology and internet stocks: ARK Innovation ETF, ARK Next Generation Internet ETF, and ARK Autonomous Tech fund ETF are all down -- 54%, 53% and 28%, respectively.

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Comments

  • Basics101
    2022-06-09
    Basics101
    Down 54% nice! Don't know many rookies who can beat that!
  • JLKang
    2022-06-09
    JLKang
    Ok
  • SiniS
    2022-06-09
    SiniS
    👍🏻
  • Remotecam
    2022-06-09
    Remotecam
    Accumulation, followed by pump and dump. She gotta get back her 40% losses one way or another.  
  • blessed_1
    2022-06-09
    blessed_1
    Ok
  • Timtan85
    2022-06-09
    Timtan85
    Pls like
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