Cathie Wood of ARK Invest has taken advantage of the recent decline in Tesla (NASDAQ: TSLA) shares to add to her portfolio. ARK Innovation ETF and the ARK Next Generation Internet ETF funds have bought about $28 million worth of Tesla shares, buying back some of what they sold in the last four months.
Cathie Wood of ARK Invest has taken advantage of Tesla's declining share price by accumulating TSLA shares again after several months of reduction of investments. On Thursday, the investment firm bought 33,482 Tesla shares worth nearly $28 million, based on the latest closing price of the shares, through its flagship ARK Innovation ETF and ARK Next Generation internet ETF, according to data from Reuters. Tesla shares slipped to $829.10, their lowest close in three months, prompting ARK to start buying back shares in the valuable company that has strong growth prospects.
Wood's fund began reducing its stake in Tesla in August 2021. Tesla is still ARK Innovation's main holding, but its stake in the ETF has fallen to 8% from 11.2% at the end of October, according to Refinitiv data. In September 2021, ARK Invest said its five-year price target for Tesla is $3,000 per share, which should be a benchmark for the firm's true attitude towards the manufacturer and its prospects.
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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.