Tesla shares fell sharply on Monday after the release of third-quarter delivery data. Cathie Wood's funds took advantage of the decline to buy more shares.
Cathie Wood's funds, owned by ARK Investment Management, an investment firm, bought more than 130,000 Tesla shares on Monday as they recorded the sharpest price drop in four months. According to data compiled by Bloomberg, this is the first Tesla purchase by its funds since mid-June.
Tesla shares fell 8.6% on Monday, the sharpest drop since June 3, after the third-quarter deliveries miss of expectations. Keep in mind that the company's production figures were in line with expectations, but the company was unable to deliver about 20,000 vehicles before the end of the quarter due to logistical difficulties.
Purchases on Monday were made from the flagship ETF ARK Innovation (Exchange Traded Funds) and the Internet ETF ARK Next Generation. The main ARK ETF is down 60% in 2022 as the Federal Reserve's monetary tightening and fears of a global recession take a toll on stocks.
The recent acquisition of Tesla shares is further evidence that the tech investor is again increasingly using price adjustments to invest. In her approach, Wood adheres to the golden rule of the stock market, which is “buy dips.”
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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.