MW Tesla's stock keeps getting cheaper - and Cathie Wood's ETFs keep buying it
By Tomi Kilgore
ARK Invest ETFs bought roughly $26 million of Tesla stock in the past three days, and more than $100 million in April
The continued selloff in shares of Tesla Inc. to 15-month lows hasn't deterred Cathie Wood's ARK Invest from buying.
The electric-vehicle giant's stock $(TSLA)$ was down another 1.2% in afternoon trading. It has tumbled around 15% amid a six-session losing streak and on Friday was headed for its lowest close since Jan. 25, 2023.
Read: Tesla Cybertruck recall: How owners can fix the potential safety problem.
Also read: Tesla reports earnings next week - can you as an investor expect anything good?
Meanwhile, Ark Invest, the investment firm that Wood founded and runs as chief executive, said it bought a total of 88,720 Tesla shares for its exchange-traded funds on Thursday, which based on Thursday's closing price would be valued at roughly $13.3 million. The purchases include 64,419 shares, valued at about $9.7 million, by Wood's flagship Ark Innovation ETF ARKK.
Over the previous three days, in which Tesla's stock dropped 7.2%, the Ark ETFs bought a total of 175,907 shares of Tesla stock valued at $26.9 million, including 127,821 shares bought by the Ark Innovation ETF.
And so far in April - a month in which the stock had slumped 14.7% through Thursday's close - the Ark ETFs had bought 629,044 shares valued at $102.9 million.
That follows the Ark ETFs' pattern of buying shares of large holdings as prices dip, while also trimming stakes as prices rally.
Don't miss: Cathie Wood's ETFs are now buying Tesla's stock.
As of Friday, Tesla's stock is the ARK Innovation ETF's largest holding with a 9.75% weighting, above No. 2 holding Coinbase Global Inc. $(COIN)$, which had an 8.98% weighting.
Tesla's stock is also the largest holding of the ARK Autonomous Technology & Robotics ETF ARKQ with a 9.93% weighting, just above second-place Kratos Defense & Security Solutions Inc. shares $(KTOS)$ at 9.93%.
Meanwhile, Tesla's stock is the ARK Net Generation Internet ETF's ARKW fifth-largest holding.
Tesla's stock has plunged 40.3% this year to date, while the Global X Autonomous & Electric Vehicles ETF DRIV has declined 9.2% and the S&P 500 index SPX has gained 4.4%.
-Tomi Kilgore
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April 19, 2024 14:31 ET (18:31 GMT)
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