Ark Invest’s Cathie Wood Increases Stake in Tesla After Stock Sell-Off
Cathie Wood, the founder of Ark Invest, took advantage of the recent sell-off in Tesla stock to increase her stake in the company. Tesla, one of Wood’s top holdings, experienced a significant drop in share price following disappointing earnings and a warning of a slowdown. Wood’s flagship ARK Innovation ETF purchased 148,246 shares of Tesla, while her ARK Autonomous Technology & Robotics ETF acquired an additional 29,624 shares. Combined, these purchases amounted to over $32 million based on Tesla’s closing price. The stock plummeted by 12% on Thursday, marking its largest decline in over a year. Tesla attributed the sell-off to lower growth expectations for 2024 as it focuses on launching its next-generation vehicle.
Wood’s Trading Strategy and Projections
Cathie Wood has a history of actively trading around Tesla stock. She capitalizes on price fluctuations by taking profits and reinvesting in other high-conviction purchases. Last year, Wood expressed optimism about Tesla’s future and projected a potential price target of $2,000 within five years. This valuation would correspond to a market cap exceeding $5 trillion for the electric carmaker. Wood has also set a bear case target of $1,400 and a bull case target of $2,500. Her support for Tesla stems from her belief in the accelerated adoption of electric vehicles and the company’s artificial intelligence capabilities.
Wood’s Overall Investment Strategy
In addition to her interest in Tesla, Cathie Wood has investments in other prominent companies such as Coinbase, Roku, and Zoom. She strategically allocates funds across various industries with high growth potential. Wood believes that disruptive technologies will revolutionize multiple sectors and seeks to identify companies at the forefront of these innovations. Her investment firm, Ark Invest, focuses on long-term investments and actively manages several exchange-traded funds (ETFs) centered around innovative themes.
Hot Take: Cathie Wood’s Ongoing Support for Tesla
Cathie Wood’s recent increase in her stake in Tesla demonstrates her ongoing confidence in the company’s future prospects, despite the stock’s recent decline. As an influential figure in the investment community, Wood’s continued support for Tesla reinforces the narrative of electric vehicle dominance and the potential for significant market growth. While Tesla faces challenges and uncertainties, Wood remains committed to her bullish projections and believes that the company’s advancements in AI and electric vehicles position it as a major player in the global automotive industry.
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