Cathie Wood's Ark funds plow another $19 million into Tesla stock after Elon Musk's EV maker missed delivery targets
- Two of Cathie Wood's Ark Invest funds snapped up another $19 million worth of Tesla shares Tuesday.
- Tesla's stock closed over 12% lower Tuesday after Elon Musk's automaker missed delivery forecasts.
Cathie Wood's Ark Invest has loaded up on more Tesla shares, continuing to buy the dip on the electric-vehicle maker after its stock fell in the wake of disappointing delivery figures.
Two of the famed money manager's exchange-traded funds on Tuesday bought shares worth more than $19 million, based on their closing price of $108.10 the same day.
The flagship Ark Innovation (ARKK) ETF purchased 144,776 shares in Elon Musk's automaker, while its Ark Autonomous Tech & Robotics (ARKQ) fund bought 31,336, for a combined total of 176,112. Tesla now makes up 6.55% of ARKK's holdings, worth more than $380 million.
ARKK was up 1.2% in premarket Wednesday, but is trading at five-year lows as Tesla suffers its worst decline since going public in 2010.
Tesla shares fell over 12% Tuesday after the EV maker said it had delivered fewer cars than expected in the previous 12 months. It also missed forecasts for the fourth quarter of 2022, notching 405,000 deliveries, compared with an estimated 430,000.
The moves add to Wood's dip-buying spree that saw Ark buy roughly $88 million of Tesla stock in the fourth quarter of last year. The fund manager remains bullish on the company as she believes Musk is determined to bring full autonomy to vehicles by 2024.
Tesla stock fell 65% over the course of last year, and plunged 40% in December alone. The automaker had a tough 2022, and has offered hefty discounts on some of its most popular cars as it faces setbacks such as tighter restrictions on EV tax credits, a slowdown at its Shanghai factory and a worrying slump in demand.
Some Tesla shareholders are also worried that Musk's acquisition of social platform Twitter has drawn his focus away from the carmaker. Wedbush analyst Dan Ives has said Musk is using Tesla as "his own ATM machine to keep funding the red ink at Twitter" after the CEO disposed of stock.
But Musk has blamed the Tesla's problems on the broader macroeconomic climate and the Federal Reserve's aggressive monetary policy as rising interest rates deter investors from growth stocks.
In premarket trading Wednesday, Tesla shares were up almost 1% at $109.04.
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