Cathie Wood-led ARK Investment Management bought a whopping 100,982 shares of Tesla Inc on Tuesday at an estimated valuation of over $12 million based on Tuesday’s closing price, taking its cumulative purchase of the EV maker's stock this year to about 384,000 shares.
The purchase was done through theARK Innovation ETF (ARKK) and the ARK Autonomous Tech. & Robotics ETF (ARKQ).
Shares of Tesla closed 0.77% lower on Tuesday. The company has applied to expand its Gigafactory in Texas with a total investment of $775.7 million, one of its largest expansion drives since it set up the $5.5 billion Gigafactory in Germany, Reuters reported citing government filings.
ARK’s cumulative purchases of Tesla since mid-December amount to over 860,000 shares. The fund’s 2026 price target for the stock would be about $500 per share, based on its EV business alone, the firm’s analyst Tasha Keeney said. The projection is adjusted for the 3-for-1 stock split that became effective on Aug. 25, 2022.
Major Sale: ARK continued to offload shares of Chinese EV-maker Xpeng Inc for the third straight day. The ARK Autonomous Tech. & Robotics ETF sold 339,543 shares of the company on Tuesday at an estimated valuation of over $3.4 million. ARK had sold 111,173 shares of the company on Monday while offloading over 169,000 shares of the EV-maker on Friday last week.
Shares of Xpeng have lost over 4% in the last five days.