Tesla, Inc. TSLA received a vote of confidence from Cathie Wood‘s Ark Investment Management last week, as the investment firm swooped in to buy shares after a stock price dip.
Ark’s Purchases Counteract Tesla Slide
Three of Ark Invest’s actively managed exchange-traded funds (ETFs) purchased Tesla shares on Friday. This buying activity is significant because Tesla’s stock price had tumbled nearly 4% earlier in the session. While it recovered some losses, it still closed Friday down 1.15% at $170.83, according to Benzinga Pro data.
Production Cut Rumors Spook Investors
The decline was likely a reaction to a Bloomberg report claiming that Tesla asked its Giga Shanghai factory to reduce workweek shifts from the usual 6.5 days to a 5-day schedule. This news worried investors already concerned about a potential first-quarter sales shortfall.
Details of Ark’s Tesla Purchases
On Friday, Ark purchased Tesla shares through the following ETFs:
- Ark Innovation ETF ARKK: 90,915 shares
- Ark Next Generation Internet ETF ARKW: 20,416 shares
- ARK Autonomous Technology & Robotics ETF: 5,077 shares
See Also: Best ETFs To Buy Right Now
These purchases totaled 116,408 shares, valued at approximately $19.89 million. Notably, on March 14, Ark had already bought 216,682 Tesla shares, worth $35.21 million, amidst prior stock weakness.
Ark Trims Holdings in Crypto-Related Companies
While showing confidence in Tesla, Ark continued to offload shares of cryptocurrency exchange Coinbase Global, Inc. COIN and Robinhood Markets, Inc. HOOD. This comes after a cryptocurrency market cool-off since mid-March, following a strong uptrend in the previous months. Bitcoin BTC/USD, the leading cryptocurrency, surpassed $73,500 in mid-March but has since seen its rally stall.
Despite this, Ark’s spot Bitcoin ETF, the ARK 21Shares Bitcoin ETF ARKB, launched in January, has gained roughly 37% since its listing.
On Friday, Ark sold 217,610 Coinbase shares (valued at approximately $55.60 million) and 314,789 Robinhood shares (valued at approximately $5.76 billion). Coinbase remains ARKK’s top holding, with a value of approximately $830.98 million.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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