Cathie Wood Continues Buying-Spree In Tesla And This Rival Chinese Automaker

Cathie Wood-led Ark Investment Management on Tuesday further raised its exposure in Tesla Inc TSLA and the U.S. listed Chinese electric vehicle maker Xpeng Inc XPEV.

The popular stock picking firm bought 7,132 shares — estimated to be worth $6.64 million based on the latest closing price— in the Elon Musk-led Tesla.

Tesla stock closed 0.58% lower at $931.25 a share. The stock is down 22.4% so far this year.

After months of profit booking in Tesla, the St. Petersburg, Florida-based Ark Invest has returned to buying shares in the electric vehicle company as shares fell last week after Musk told investors Tesla is not currently not making a $25,000 electric car.

Ark Invest owns shares in Tesla via the Ark Innovation ETF ARKK, the Ark Next Generation Internet ETF ARKW and the Ark Autonomous Technology & Robotics ETF ARKQ.

The three ETFs held 1.54 million shares — worth $1.44 billion — in Tesla, prior to Tuesday’s trade. 

Musk told investors last week Tesla does not plan to produce new model vehicles this year and that it is more important to develop the humanoid robot and focus on autopilot, or the full self driving.

See Also: Cathie Wood Buys $39.5M In Tesla Shares On Monday — Also Loads Up In This Chinese EV Rival

Tesla on Tuesday recalled nearly 54,000 of its electric cars related to its driver-assistance feature; though none of the cars need to be taken to a repair shop.

Wood, who is a Tesla bull, has set a $3,000 price target for the maker of Model 3 and Model S electric sedans, to be hit by 2025.

Ark Invest on Tuesday also bought 14,000 shares — estimated to be worth $509,600 — in Xpeng.

Xpeng stock closed 3.7% higher at $36.4 a share on Tuesday. The stock is down 27.6% year-to-date.

See Also: Tesla Rival Xpeng's January Deliveries Outshine Those Of Rivals Nio, Li Auto: What You Need To Know

The Guangzhou, China-based Xpeng on Tuesday reported monthly delivery numbers better than close rivals Nio Inc NIO and Li Auto Inc LI. 

This is a second buy in Xpeng for Ark Invest this year, a stock that it has been piling up since early December.

Xpeng said it delivered 12,922 electric vehicles in January, a fall of 19% over December and a jump of 114% over January 2021.