Cathie Wood Loads Up $38M Worth More Shares Of This Chinese EV Maker Seen As Tesla Rival

Cathie Wood led Ark Investment Management last Friday bought 24,876 shares —estimated to be worth $942,551 based on the latest closing price— in the U.S.-listed Chinese electric vehicle maker Xpeng Inc XPEV on the dip.

The Guangzhou, China-based Xpeng’s shares closed 3.7% lower at $37.89 a share on Friday. The stock is down 24.6% year-to-date.

The electric vehicle maker is much smaller in size than the current global market leader Tesla Inc TSLA. 

It is however seen as a rival to other local Chinese electric vehicle startups such as Nio Inc NIO and Li Auto Inc LI as they have quickly brought to market their green product lineup ahead of most legacy stalwarts and are growing fast. 

Xpeng  has in recent months navigated the chip crisis better than most local rivals and delivered higher volumes.

The EV maker recently included its ordinary shares, which trade on The Stock Exchange of Hong Kong Limited (HKEX), in the Shenzhen-Hong Kong Stock Connect program to boost investor reach in mainland China. 

The news drove its Hong Kong listed shares 11% higher earlier this month.

Xpeng said on Friday its stock would be added to The Hang Seng TECH Index as a constituent on March 7. 

See Also: Cathie Wood Loads Up $1M In Tesla Shares — And Almost Double In This Chinese EV Rival — On Thursday

The Hang Seng Family of Indexes are regarded as a key measure of the Hong Kong stock market, and the index represents the 30 largest technology companies listed in Hong Kong with exposure to technology themes.

Ark Invest has been piling up shares in Xpeng since late last year. It is the only other all-electric vehicle company stock besides Tesla Inc TSLA on which the firm has maintained a bullish outlook.

Wood has predicted Tesla stock will hit a $3,000 a share price target by 2025. The investment firm has bet billions in the Elon Musk-led company’s future.

The popular stock picking firm held 922,890 shares — worth $36.3 million— in Xpeng, prior to Friday’s trade.

Photo: Couresty of en.xiaopeng.com