When it comes to Tesla Inc.’s stock, Cathie Wood seems to subscribe to the Wall Street strategy of buying on dips and selling on rallies.
Wood’s flagship ARK Innovation exchange-traded fund
ARKK
bought 94,733 shares of the electric-vehicle giant on Thursday, which at the closing price that day would be valued at $21.53 million.
Tesla’s stock
TSLA,
is the second-largest holding of the ETF, with a weighting of 7.9%, behind only Coinbase Global Inc.’s stock
COIN,
at 9.28%.
After a stretch of trimming its stake in Tesla into mid-October 2023, the ETF started buying again in December.
The ETF bought 93,965 shares valued at $23.22 million on Dec. 20, a day the stock sank 3.9%. On Jan. 3, when the stock sank 4%, the ETF purchased 91,194 shares valued at $21.75 million.
Cathie Wood’s ARK Innovation ETF has again bought Tesla’s stock after a big dip.
FactSet, MarketWatch
On Thursday, the stock slumped 2.9% to a two-month low, as rental-car company Hertz Global Holdings Inc.’s
HTZ,
move to downsize its EV fleet due to weak demand helped put pressure on EV stocks.
Also read: Lucid’s stock dives toward another record low after EV deliveries disappoint
When the ETF made its last sale of Tesla shares on Oct. 18, the stock was up 97% year to date, while the S&P 500 index
SPX
was up 12.4%.
The last sale of Tesla’s stock by Cathie Wood’s ARK Innovation ETF came after a big year-to-date rally in the stock.
FactSet, MarketWatch
The ARK Innovation ETF, which had $8.12 billion in net assets as of Nov. 30, invests in “disruptive innovation,” or companies that introduce technologies and products that could potentially change the way the world works.
Meanwhile, the ETF continues to trim its stake in cryptocurrency exchange Coinbase, whose stock has been soaring as the much-anticipated approval of spot bitcoin ETFs fueled a frenzy in cryptocurrency markets. Wood’s ETF sold 26,301 shares, valued at $3.71 million, on Thursday.
Since Dec. 20, when the ETF started buying Tesla’s stock, it has sold a total of 604,074 shares valued at a total of $96.47 million.
Read: Don’t assume Coinbase’s stock will benefit from the bitcoin ETF, analysts say
Also read: Bitcoin is a ‘public good,’ says ARK’s Cathie Wood as spot ETF debuts
Coinbase’s stock, which slumped 5% through morning trading on Friday, has rocketed 182% over the past 12 months, while bitcoin
BTCUSD,
has run up 136% and the S&P 500 has advanced 19.9%.
The ARK Innovation ETF has climbed 34.4% over the past year.
