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. (NASDAQ:TSLA) and Meta Platforms Inc (NASDAQ: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 (NYSE: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.

Image via Shutterstock

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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal