Cathie Wood’s ARK buys the Tesla sequel to its weakness. By

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By the team

Cathie Wood’s ARK Investment Management continued to add to the fund’s position in Tesla (NASDAQ:) due to the EV maker’s recent weakness. ARK purchased an additional 19,125 Tesla shares on Tuesday through the ARKK ETF (NYSE:). The purchase was valued at around $2.64 million based on Tuesday’s closing price.

On Monday, the fund bought 27,494 shares through ETF ARKQ (NYSE:), worth about $3.8 million. ARK has also made similar purchases over the past few weeks.

Tesla shares have fallen 61% year-to-date on pullback fears and CEO Elon Musk’s personal drama over the Twitter takeover (NYSE:). Musk sold billions of Tesla shares to support the Twitter operation and pledged Tesla shares as collateral for some buyout-related loans.

Over the weekend, Musk launched a Twitter poll asking users if he should step down from Twitter leadership. An overwhelming majority voted “yes”. Musk said he would abide by the poll results, but finding a CEO for Twitter could take some time. “I will step down as CEO as soon as I find someone crazy enough to take the job!” Musk tweeted. “After that, I will just lead the software and server teams.”

Regarding the weakness in stocks, Musk blames the rise for putting pressure on stocks, including those of Tesla, as investors now have a “guaranteed” return alternative to stocks.

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