Cathie Wood Doubles Down On Tesla Amid 60% Downside Warning: Ark Adds Another $11.4 Million Worth of TSLA Stock

Benzinga04-09 13:03

Ark Invest, led by Cathie Wood, executed a significant trade on Thursday by purchasing shares of Tesla Inc.. This move comes amid mixed analyst opinions and market volatility surrounding the electric vehicle giant.

The Tesla Trade

ARK Innovation ETF acquired 33,210 shares of the Elon Musk-led company. The purchase was made amid recent bearish sentiment among analysts, including JPMorgan’s Ryan Brinkman, who highlighted concerns about Tesla’s growing inventory levels. Brinkman pointed out that Tesla had a record 50,363 unsold vehicles at the end of the first quarter, which could potentially lead to a significant drop in stock value. He reiterated an Underweight rating with a $145 price target, suggesting a possible 60% downside from its current price.

Ark's latest Tesla purchase was valued at roughly $11.4 million, based on Wednesday's closing price of $343.25. Combined with $16.4 million in Tesla shares bought on Monday and Tuesday, the firm's total purchases this week reached $27.8 million. National Highway Traffic Safety Administration, which closed its investigation into Tesla’s Smart Summon feature. This regulatory win, however, contrasts with the stock’s recent performance, as it has experienced a decline of over 13% in the past month and nearly 21% year-to-date.

Ark's latest Tesla purchase was valued at roughly $11.4 million, based on Wednesday's closing price of $343.25. Combined with $16.4 million in Tesla shares bought on Monday and Tuesday, the firm's total purchases this week reached $27.8 million.

Tesla shares have fallen 13.9% so far this month and are down 21.6% year-to-date.

Other Key Trades

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Comments

  • VtTeh
    04-09 23:54
    VtTeh
    Buy n wait. SpaceX, new techs...will push the price up quickly and steadily.
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