Here comes another bargain hunting! "Wood Sister" increased her holdings of Tesla by approximately $141 million in January, going against the trend.
Despite the disappointment from Wall Street regarding Tesla's recent performance, Cathy Wood, the CEO of Ark Investment Management, has been buying the stock aggressively on dips. In January of this year, Wood purchased approximately $141 million worth of Tesla shares. Despite the decline in Tesla's stock price, Wood remains confident in its long-term prospects. Ark Investment's research team predicts that Tesla's stock price will reach $2000 by 2027. This buying opportunity has allowed many investors to see the potential of Tesla.
Zhitong App has learned that despite Wall Street's disappointment with Tesla's recent performance, star fund manager and CEO of Ark Investment Management, Cathie Wood, has been buying the stock aggressively on dips.
In January of this year, Wood's firm purchased nearly 690,000 shares of the electric vehicle manufacturer across two ETFs managed by Ark Investment. Based on closing prices, these ETFs collectively bought approximately $141 million worth of Tesla stock.
Wood has been a long-time believer in Tesla, but prior to this round of buying, she had been selling off most of her holdings in the stock for three consecutive quarters. Tesla was the third largest holding in her flagship ARK Innovation ETF (ARKK.US) and the sixth largest holding in the ARK Next Generation Internet ETF (ARKW.US).
So far this month, Tesla has fallen 25% as the auto industry warns of a significant decline in demand for electric vehicles and Wall Street analysts have lowered their expectations for the stock. Wood's flagship fund is down nearly 10%, but this comes after a 68% surge in 2023.
After Tesla's stock price plummeted following the release of its fourth-quarter earnings report last Wednesday, in which the company stated that it expects to expand at a "significantly slower" pace in 2024, Wood purchased over 360,000 additional shares of Tesla stock on Thursday and Friday.
Ark Investment's research team had previously projected that Tesla's stock price would reach $2,000 by 2027, with Tesla's autonomous ride-hailing business being a key driver. Wood has also frequently expressed her firm's support for companies that have the potential to change the world.
Garrett Nelson, Vice President and Senior Equity Analyst at CFRA Research, commented, "We view this as a show of confidence in Tesla's long-term prospects, and we believe many investors have been waiting for an opportunity to buy the stock after it more than doubled last year. With the selling pressure on the stock so far this year, they are now getting that chance."