Despite difficulties, Cathie Wood is bullish on Tesla.
Renowned fund manager Cathie Wood, who is renowned for her audacious investing methods, has increased her stake in Tesla (TSLA), the industry leader in electric vehicles, dramatically once again demonstrating her faith in the business. A significant 319,162 shares of Tesla stock were bought by Ark funds, managed by Wood, on Monday and Tuesday. As of Tuesday’s market closing, this transaction totaled $53.2 million.
Even while Tesla has seen difficulties, including a drop in first-quarter deliveries, and its shares have fallen 32% so far this year, Wood is still upbeat about the company’s long-term prospects. Despite doubts expressed by analysts such as Emmanuel Rosner of Deutsche Bank about Tesla’s prospects for development this year, Wood remains steadfast in her support of her investment in the pioneer of electric vehicles.
Wood’s admiration for Tesla’s CEO, Elon Musk, and his commitment to advancing environmentally friendly transportation solutions is well-known. Tesla holds a significant position as the second-largest holding in Ark Innovation, reflecting Wood’s confidence in Musk’s vision and the company’s potential to revolutionize the automotive industry.
In addition to her bullish stance on Tesla, Wood has also made strategic moves regarding other holdings in Ark funds. On Tuesday, Ark funds divested 811,792 shares of online sports gambling platform DraftKings (DKNG), valued at $36.3 million, possibly indicating a decision to lock in profits amidst the stock’s impressive performance over the past year.
Similarly, Ark Funds sold 663,796 shares of online securities brokerage Robinhood (HOOD) on Monday, amounting to $12.7 million, as the stock witnessed a significant surge in value fueled by heightened retail investor activity in the equities market.
While Wood’s recent buying and selling activities reflect her dynamic investment approach and willingness to adapt to market conditions, her continued confidence in Tesla underscores her conviction in disruptive innovation and long-term value creation. As the investment landscape evolves, investors will closely monitor Wood’s moves for insights into emerging opportunities and trends in the market.
Shayne Heffernan
