Tesla Stock Rebounded 2.6% in Premarket Trading
On a day $Tesla Inc(TSLA)$ stock dropped to over two-year lows, Cathie Wood’s ARK Investment Management took the opportunity to load up on the EV maker’s shares, displaying its unflinching trust in the company.
Tesla stock rebounded 2.6% in premarket trading.
ARK’s flagship fund, the ARK Innovation ETF (ARKK), bought 25,147 shares of the company at an estimated valuation of about $2.7 million. Shares of Tesla closed 11.41% lower on Tuesday after a Reuters report indicated the company was intending to run a reduced production schedule in January at its Shanghai plant causing concerns over demand.
The company’s Shanghai plant accounted for over half of its output in the first three quarters of 2022. Based on forecasts for the fourth quarter, analysts expect output to fall short of its goal by about 45%.
Since mid-December, Wood’s funds have loaded up over 214,000 shares of the EV maker.
Tesla is the third largest holding of ARKK with a weight of 6.46% while it is the second largest holding of the ARK Autonomous Tech. & Robotics ETF (ARKQ) with a weight of 7.7%, according to the latest data available on the company’s website.
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