Cathie Wood’s ARK Invest loads up on Tesla shares in three funds

Credit: Tesla

Cathie Wood’s ARK Invest loaded up on Tesla shares (NASDAQ: TSLA) in its Innovation, Next Generation Internet, and Autonomous Technology & Robots ETFs on Wednesday.

The company’s three funds saw a buying opportunity in the automaker’s recent slump on Wall Street. ARK’s Innovation ETF bought 27,594 shares on Wednesday, while the Next-Gen Internet and Autonomous Tech & Robots ETFs gained 2,909 shares and 9,173 shares, respectively.

Tesla shares have slid over 15 percent in the last five trading days and nearly 47 percent in the past year for various reasons. Most recently, the stock’s performance has been highly affected by CEO Elon Musk’s purchase of social media platform Twitter, which has put many investors in a tough spot determining whether the company is the primary focus of its leader’s current endeavors.

However, investors have looked at it from different perspectives. While ARK continues to buy up shares, others are changing their outlook on Tesla stock, at least in the short term.

Dan Ives of Wedbush is one of the analysts changing their perspective on Tesla, at least temporarily. Tesla stock was removed from the firm’s “Best Ideas” list, as Ives wrote in a note to investors, “Our near-term view of this name is increasingly becoming more challenged. The longer-term bullish view of Tesla remains generally unchanged as we believe the EV demand and production story are still in the early days of playing out as part of a massive transformation to the auto world.”

Ives reiterated his $250 price target and an ‘Outperform’ rating on Tesla shares, which closed at below $180 yesterday. At the time of writing, Tesla stock was up 6 percent, trading at around $188.39.

The stock has traditionally been met with volatility since the Musk-Twitter saga began, and with a majority of his Tweets now promoting new ideas for his newest venture, investors are skeptical.

“Musk has essentially tarnished the Tesla story/stock and is potentially starting to impact the Tesla brand with this ongoing Twitter trainwreck disaster,” Ives said. Perhaps some of the most piercing words of the note from Ives were that Musk has done “what bears have unsuccessfully tried for years…crush Tesla stock by his own doing what we view as a purely painful dark situation.”

Nevertheless, Tesla’s permabulls continue to attach themselves to the company’s thesis. ARK remains bullish on Tesla.

Disclosure: Joey Klender is a TSLA Shareholder.

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.
Related Post
Disqus Comments Loading...