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Tesla, Inc. TSLA shares fell sharply intraday on Monday before recouping most of the losses and ending moderately lower, with worries concerning first-quarter delivery miss potentially triggering the sell-off. Undeterred by this, Cathie Woods Ark Invest bought another bunch of Tesla shares on Monday.
Tesla Buying: Ark, through its flagship Ark Innovation ETF ARKK and Ark Next Generation Internet ETF ARKW bought 84,164 Tesla shares on Monday. The purchase would have cost the firm $14.75 million, based on Teslas closing price of $175.22.
Tesla is ARKKs second-biggest holding in terms of value of shares and it accounts for 8.68% weighting in the exchange-traded fund. Wood and Ark are bullish on Tesla despite the near-term noise, with the celebrity stock picker calling CEO Elon Musk as the Renaissance Man of our age.
Ark expects Tesla to hit $2,000 by 2027.
The Wood-led has been a sporadic buyer of Tesla shares in recent times, especially propping them up during their weakness.Loading… Loading…
Tesla is expected to announce its first-quarter deliveries on Tuesday and analysts are downbeat about the number. Troy Teslike, a fairly accurate Tesla number cruncher, looks for deliveries of 409,000 units, down from the 422,875 unit sales the company reported a year ago and also lower than the current consensus estimate of 431,125 units.
Gary Black, Manager Partner at Future Fund and a Tesla investor said the stock could rally even in the face of a delivery miss if the company manages to avert a year-over-year sales decline.
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Major Stock Disposals: In line with its recent stance, Ark continued to offload shares of Robinhood Markets, Inc. HOOD and Coinbase Global, Inc. COIN both companies having exposure to cryptocurrencies. It is noteworthy that cryptocurrency exchange Coinbase is still ARKKs top holding. The actively-managed ETF holds $773.03 million Coinbase shares, and this gives the stock a weighting of nearly 10% in the fund.
The cryptocurrency market saw weakness on Monday, with the apex crypto, Bitcoin BTC/USD slipping further below the $70,000 mark.
Ark also persisted with its Nvidia Corp. NVDA selling.
The details of the sales are as follows: Robinhood: 663,796 shares valued at $12.88 million Coinbase: 7,040 shares valued at $1.78 million Nvidia: 3,200 shares valued at $2.89 million
Ark ended Mondays session down 1.68% at $49.24, according to Benzinga Pro data.
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