Cathie Wood-led ARK Investment Management has utilized the recent rout in Tesla Inc TSLA stock to once again prove how bullish they are on the EV-maker’s prospects. Funds managed by ARK loaded up on Tesla shares worth over $11 million based on Wednesday’s closing price. The bulk of the purchase was done via the flagship Ark Innovation ETF ARKK which has Tesla as its third largest holding with a weight of 7.07%.
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Tesla shares have lost close to 49% since mid-September. The stock has eroded over 19% in the last month itself. Perception toward the company and the brand has taken a beating in recent times in the wake of CEO Elon Musk’s preoccupation with Twitter. The billionaire’s bold statements outlining his political leanings have alienated people, a survey has found.
What has been the highlight, though, is that Tesla backers and investors worry Musk is not available for the company as they believe the bulk of his time is being eaten up by Twitter.
However, Wood’s ARK still seems to hold on to its bullish case. Last week, ARK’s Sam Korus, Director of Technology, Autonomous Technology & Robotics, wrote in a note that if Tesla delivers the Cybertruck with charging power as it disclosed during a recent event, it could reach the EV performance that ARK had projected for 2026 in 2023 — three years ahead of schedule.
In mid-November, ARK had bought over 3,800 shares of Tesla at an estimated valuation of over $700,000.
Other Buy: ARK also capitalized on the recent rout in cryptocurrency stocks to load up on Coinbase Global Inc COIN, which enables users to buy Bitcoin BTC/USD, Ethereum ETH/USD and other coins, at an estimated valuation of over $11 million, based on Wednesday’s closing price. Coinbase shares have lost over 27% in the last month. It is the 15th largest holding of ARKK.
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Image and article originally from www.benzinga.com. Read the original article here.