Photo: Christophe Ena / Associated Press
ARK Invest on Tuesday bought another $171 million of Tesla shares after the manufacturer's stick price fell to close below $700 for the first time this year. Where others see the negative, the investment fund sees great opportunity.
The $26.6 billion ARK Innovation Exchange Traded Fund (ETF) was one of the best performing ETFs in 2020. However, following the decline in TSLA this week, ARK has also experienced a decline. At the same time, the sale sparked intense trading and opened up new opportunities for ARK, such as buying additional shares. According to the firm's website, the purchase of Tesla shares came in three installments: approximately $124 million, $39 million, and $8 million. Thus, the total investment in Tesla by ARK on February 23 amounted to about $171 million.
These purchases added 11,893 TSLA shares to the ARK Autonomous Technology & Robotics ETF, 177,214 shares for the ARK Innovation Fund, and 51,441 shares for the ARK Next Generation Internet ETF. It was the second day in a row that Cathie Wood's funds were buying TSLA, with 27,350 shares being snapped up by ARKQ on February 22 and 62,048 shares for ARKW. ARK Invest currently owns more than 0.5% of Tesla shares, which is 6.6% of all its funds.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.