Cathie Wood’s Ark Invest bought the dip in Tesla shares on Thursday after her beloved EV player sold off on a quarterly revenue miss . The innovation-focused investor added 66,190 shares of Elon Musk’s company for her flagship Ark Innovation ETF (ARKK) fund, according to Ark’s daily trading data. The purchase cost more than $13.7 million based on Tesla’s closing price of $207.28 Thursday. Shares of Tesla slid about 6.7% Thursday as the company’s revenue fell short of expectations. The company said on its earnings call that, while it expects 50% annual growth in production this year, its deliveries may fall just under 50% growth “due to an increase in the cars in transit at the end of the year.” Tesla is the second biggest holding of ARKK, accounting for 9% of the ETF. Zoom Video recently took the first spot in the ETF after Wood bought the dip in the beaten-down name. Wood’s updated call on Tesla predicts the stock to hit $4,600 by 2026. The target would be adjusted to $1,533 after Tesla executed a 3-for-1 stock split in late August. Shares of Tesla are down 41% this year as the company deals with transportation bottlenecks that created a gap between production and deliveries. Tesla also grapples with slowing demand as the global economy struggles in the wake of central banks’ tightening actions. Wood’s conviction in Tesla centered around the shift to electric vehicles. She previously said there will be almost 8 million electric vehicles sold around the world this year and that number will rise to 60 million in five years. The innovation investor has had a tough 2022 as her disruptive technology darlings have been among the biggest losers this year in the face of rising interest rates. ARKK is down a whopping 62% year to date, after hitting a new 2022 low last week.
Related News
