Renowned investor Cathie Wood’s firm, Ark Investment Management, recently reaffirmed its trust in Tesla, Inc. (TSLA) even as the stock experienced a downturn.
Ark’s actively managed exchange-traded funds (ETFs) stepped in to purchase Tesla shares on Friday, a crucial move considering a 4% drop in the stock price earlier that day.
Market jitters may have been triggered by rumors of potential production cutbacks at Tesla’s Giga Shanghai facility, heightening existing concerns about first-quarter sales.
Ark executed Tesla share purchases across three of its ETFs:
- Ark Innovation ETF (ARKK): 90,915 shares
- Ark Next Generation Internet ETF (ARKW): 20,416 shares
- ARK Autonomous Technology & Robotics ETF: 5,077 shares
The total Tesla shares purchased amounted to 116,408, valued at around $19.89 million. Notably, Ark had previously acquired 216,682 shares worth $35.21 million on March 14 during earlier stock fluctuations.
Despite endorsing Tesla, Ark opted to reduce its holdings in cryptocurrency-related companies like Coinbase Global, Inc. (COIN) and Robinhood Markets, Inc. (HOOD) due to the recent cooling off in the cryptocurrency market.
Interestingly, Ark’s ARK 21Shares Bitcoin ETF, launched in January, has remarkably appreciated by roughly 37% since its inception despite the broader cryptocurrency market slowdown.
Ark significantly divested its holdings, selling 217,610 Coinbase shares valued at approximately $55.60 million and 314,789 Robinhood shares valued at around $5.76 billion. Coinbase still ranks as the top holding in ARKK with an approximate value of $830.98 million.
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