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In the Midst of a 12% Share Price Decline, Ark Invest's Cathie Wood Adds More Than $32 Million Worth of Tesla Shares

January 26, 2024
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Cathie Wood, the founder of Ark Invest, significantly increased her holdings in Tesla on Thursday, following a substantial decline in the electric vehicle company's shares due to disappointing earnings and a projected slowdown.

Wood's flagship ARK Innovation ETF acquired 148,246 Tesla shares during the previous session, while her ARK Autonomous Technology & Robotics ETF added 29,624 shares, as per Ark's daily trading data. The total value of these purchases surpassed $32 million, based on Tesla's closing price of $182.63 on Thursday.

Tesla experienced a notable 12% drop in its shares on Thursday, marking its most significant decline in over a year. This downturn followed the company's earnings report, which fell short of expectations and included a caution about a potential slowdown in 2024. In January alone, Tesla's stock has plummeted more than 26%.

The electric car manufacturer, led by Elon Musk, communicated that the growth in vehicle volume for 2024 could be significantly lower than the previous year, emphasizing ongoing efforts towards launching its "next-generation vehicle" in Texas. Tesla also highlighted being in a transitional phase between two significant growth phases.

Within ARK Innovation ETF (ARKK), Tesla holds the fourth-largest position, accounting for a 7.2% weighting, trailing behind Coinbase, Roku, and Zoom. Known for actively managing her Tesla holdings, Wood tends to capitalize on fluctuations in the stock, selling to fund other investments during favorable periods and increasing her stake when the stock faces pressure.

Wood has been a vocal supporter of Tesla, foreseeing the company's potential to reach $2,000 within five years, driven by a boom in robotaxis. This valuation would equate to a market capitalization exceeding $5 trillion for Tesla. Her projections also encompass a bear case with a $1,400 price target and a bull case with a $2,500 target. Emphasizing the accelerated shift to electric vehicles and Tesla's artificial intelligence capabilities, Wood has consistently referred to Tesla as the "biggest AI opportunity in the world."

Eric Ng
Eric Ng
John Liu
Editorial Board
Bryan Curtis
Adan Harris
Managing Editor
Cathy Hills
Associate Editor

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