Cathie Wood Bets On Elon Musk's Tesla Despite Cybertruck Recall, Dumps Zuckerberg's Meta Shares Again

On Thursday, Cathie Wood-led Ark Invest made significant trades involving Tesla Inc. TSLA and Meta Platforms Inc META. The trades occurred amidst Tesla’s recall of over 46,000 Cybertrucks and Meta’s ongoing privacy challenges.

The Tesla Trade saw Ark Invest’s ARK Innovation ETF ARKK acquiring 9,351 shares of the Elon Musk-led automaker. This purchase, valued at approximately $2.21 million based on Tesla’s closing price of $236.26, comes at a time when Tesla is under scrutiny. The company recently announced a recall of 46,096 Cybertruck vehicles due to safety concerns with an exterior panel.

Additionally, Tesla is grappling with a $1.4 billion discrepancy in capital expenditure. This financial gap has contributed to a significant drop in Tesla’s market valuation, from $1.7 trillion to under $800 billion. However, Ark’s purchase suggests a belief in Tesla’s ability to overcome these hurdles and continue its growth trajectory.

The Meta Platforms Trade involved Ark Invest’s ARKK ETF selling 4,648 shares of the Mark Zuckerberg-led company. This sale, valued at approximately $2.72 million based on Meta’s closing price of $586.00, follows a series of recent offloads by Ark. The decision comes as Meta’s AI model, Llama, celebrates a milestone of 1 billion downloads, yet the company faces privacy scrutiny and expansion challenges.

Importantly, Meta’s potential to generate $30-40 billion in revenue from its business messaging services is seen as undervalued by the market, according to Wolfe Research.

Other Key Trades:

CRISPR Therapeutics AG – ARKG and ARKK ETFs bought a combined total of 100,706 shares.
Intellia Therapeutics Inc – ARKG and ARKK ETFs acquired a total of 104,341 shares.
Iridium Communications Inc – ARKK, ARKQ, and ARKX ETFs purchased a total of 103,028 shares.
Recursion Pharmaceuticals Inc – ARKG and ARKK ETFs bought a total of 161,298 shares.