Tesla stock jumps over 2% in premarket trading.
As Tesla Inc shares witnessed a surprise rebound on Wednesday, Cathie Wood-led ARK Investment Management loaded up on the EV maker’s stock, having purchased 17,960 shares at an estimated valuation of over $2 million.
On Wednesday, Elon Musk reportedly told employees they should not be "bothered by stock market craziness" after the EV maker’s shares plunged nearly 70% this year on concerns over softening demand for electric vehicles and Musk's distraction following the Twitter purchase. In an email sent to staff on Wednesday which was reviewed by Reuters, Musk said he believes Tesla will be the most valuable company on earth in the long term.
The surge in the stock price follows its decline to over two-year lows on Tuesday after a report indicated the company intended to run a reduced production schedule in January at its Shanghai plant. Since mid-December, Wood’s funds have loaded up over 232,000 shares of the EV maker.
Tesla is the fifth largest holding of ARK’s flagship fund, the ARK Innovation ETF (ARKK), with a weight of 6% while holding the same rank in the ARK Autonomous Tech. & Robotics ETF (ARKQ) with a weight of 6.98%, according to the latest data available on the company’s website.