Cathie Wood Is Unstoppable With Tesla Stock – Defies Wall Street To Make Whopping $29M Purchase

Cathie Wood-led ARK Investment Management loaded up on Tesla Inc TSLA shares on a day when the stock fell over 4%.

What Happened: ARK, which is known to have defied Wall Street's negative stance on Tesla multiple times in the past, bought over 190,000 shares of the EV-maker at an estimated valuation of over $29 million based on Wednesday's closing price.

The purchase was done via the flagship ARK Innovation ETF ARKK that has Tesla as its top holding and the ARK Next Generation Internet ETF ARKW.

Also Read: Everything You Need to Know About Tesla Stock

Tesla stock witnessed another jolt on Wednesday after Jefferies analyst Philippe Houchois downgraded it from ‘Buy' to ‘Hold' and reduced the price target from $230 to $185. Tesla’s stepped-up transition to a world of sustainable energy and resource efficiency may slow down electric vehicle penetration and accelerate profit normalization for the industry, Houchois said in a note.

Price Action: April has not been a great month for the stock, especially after its earnings announcement when chief Elon Musk asserted he prefers volumes over margins. In the last one month, the stock has lost over 19%. However, on a year-to-date basis, the stock is still up 42%.

That bides well for ARK, which has said its updated open-source Tesla model projects the stock hitting $2,000 in 2027.

Lask week, ARK had loaded up on Tesla shares worth over $41.7 million in a single day.

Other Buy: Funds operated by ARK also increased stake in Beam Therapeutics Inc BEAM, having bought over 115,000 shares of the biotech stock at an estimated valuation of over $3.5 million based on Wednesday's closing price.

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