On a day Tesla Inc TSLA stock dropped to over two-year lows, Cathie Wood’s ARK Investment Management took the opportunity to load up on the EV maker’s shares, displaying its unflinching trust in the company.
ARK’s flagship fund, the ARK Innovation ETF ARKK, bought 25,147 shares of the company at an estimated valuation of about $2.7 million. Shares of Tesla closed 11.41% lower on Tuesday after a Reuters report indicated the company was intending to run a reduced production schedule in January at its Shanghai plant causing concerns over demand.
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Tesla’s latest production cuts in Shanghai coincided with the rising wave of infections after China eased down its strict COVID policy in December. The company’s Shanghai plant accounted for over half of its output in the first three quarters of 2022. Based on forecasts for the fourth quarter, analysts expect output to fall short of its goal by about 45%.
Since mid-December, Wood’s funds have loaded up over 214,000 shares of the EV maker.
Tesla is the third largest holding of ARKK with a weight of 6.46% while it is the second largest holding of the ARK Autonomous Tech. & Robotics ETF ARKQ with a weight of 7.7%, according to the latest data available on the company’s website.
Other Buy: ARK has also loaded up on Coinbase Global Inc COIN shares which closed Tuesday’s session 8% lower. The ARK Fintech Innovation ETF ARKF bought over 6,000 shares of the company at an estimated valuation of over $200,000.
Coinbase enables users to trade and hold cryptocurrencies like Bitcoin BTC/USD, Ethereum ETH/USD and Dogecoin DOGE/USD.