Cathie Wood Loads Up $2.8M In This Self-Driving Trucking Company As Shares Plunge 38% In A Week

Cathie Wood-led Ark Investment Management on Monday further raised its exposure in self-driving trucking company TuSimple Holdings Inc TSP on the dip.

The popular stock-picking firm loaded up 260,318 shares — estimated to be worth $2.79 million based on Monday’s closing price — in the San Diego, California-based autonomous trucking startup.

TuSimple stock closed 6.4% lower at $10.75 a share on Monday, sinking further below its April IPO price of $40. The stock has slumped about 38% in the past week.

Ark Invest owns shares in TuSimple via two of its six exchange-traded funds — the Ark Innovation ETF ARKK and the Ark Autonomous Technology & Robotics ETF ARKQ.

The St. Petersburg, Florida-based money managing firm held 11 million shares — worth $126.6 million— in TuSimple, prior to Monday’s trade.

See Also: Cathie Wood's Ark Is Bullish On This Self-Driving Startup Despite Last Week's 32% Plunge

The latest purchase represents about 2% of Ark's stake in the company, which is developing commercial-ready, Level 4, fully autonomous trucks for customers.

TuSimple’s unexpected management shuffle last week saw co-founder and CTO Xiaodi Hou taking over the CEO and chairman roles from Cheng Lu. 

The company said it was part of a "planned executive succession." The move spooked investors, sending its shares down 21% on Thursday and a further 13% down a day later.

Wood's firm, which has placed bets on electric vehicle companies Tesla Inc TSLA and Xpeng Inc XPEV, said it has “confidence in Xiaodi’s ability to execute on TuSimple’s autonomous strategy.”

Photo: Courtesy of TuSimple