ARK reloads on Tesla shares in multiple funds following Earnings slide

(Credit: cosmicxbird/Instagram)

Tesla shares (NASDAQ: TSLA) are being bought by Cathie Wood’s ARK Invest as the stock begins to recover from its post-Earnings Call slide. Tesla shares made their way into two of ARK’s Exchange Traded Funds (ETFs).

Following Tesla’s Earnings Call held last week, which covered the Q4 and 2021 Full Year financials, shares tumbled nearly 10 percent on Thursday and Friday despite bullish signals from the automaker’s spreadsheet. Tesla improved on its automotive gross margin and beat Wall Street consensus estimates across the board. Despite this, Tesla shares tumbled to their lowest price since mid-October, reaching $829.10 on Thursday.

The drop in stock price gave ARK Invest the opportunity to load up on more shares as the concentration of Tesla shares in its ARKK and ARKW funds dropped. ARK generally does not allow any specific stock to reach too high of a concentration in any of its funds. When Tesla’s stock price skyrockets, it is not uncommon to see ARK unload shares of Tesla in its funds. Just the opposite, as Tesla shares dropped last week, ARK loaded up on shares in massive amounts.

ARK’s ARKK fund, its “Innovation ETF,” replenished 27,556 shares of Tesla stock contributing an additional 0.21% of the automaker’s shares to the fund. As of this morning, Tesla shares make up 8.23 percent of the ARKK fund, the most of any holding by .73 percent. This concentration of Tesla shares is worth $1,067,663,152.08 as of 11:17 am EST.

Additionally, the ARKW fund, its “Next Generation Internet ETF,” received 14,568 shares, or an additional .53 percent of Tesla shares in the fund. Tesla shares are also the largest holding in this fund with 7.81 percent, or $209,739,101.76.

Interestingly, the reload comes just after the Q4 Earnings Call where Tesla reported positive earnings. The losses are being canceled out by a rebounding stock price so far this week. Tesla has regained some of its momentum heading into the first week of February, up 10.67 percent since the market closed on Friday. Tesla is battling against some tough news this morning as the NHTSA has required the automaker to deactivate the “rolling stop” feature, which will revoke the option to roll through stop signs from nearly 54,000 Tesla Full Self-Driving Beta pool participants. At the time of writing, Tesla was down just 1.69 percent.

Disclosure: Joey Klender is a TSLA Shareholder. He does not own shares of Ford or Rivian, which were also mentioned in this article.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey Klender: Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his time at TESLARATI, Joey has broken several big stories, including the first images of the Tesla Model S Plaid, the imminent release of the 4680 Model Y through EPA certification, and several expansions to the Lucid AMP-1 factory in Arizona, to name a few. His stories have been featured in several publications, including Yahoo! Finance, Fox News, CNET, and Seeking Alpha. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on Twitter @KlenderJoey.
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