After selling Elon Musk’s Tesla a month ago, Wall Street’s star investor Cathie Wood now buying the dip

Elon Musk’s Tesla seems to be back in favour with one of Wall Street’s most debated investors  — Cathie Wood. ARK Investment, the fund house run by Cathie Wood, has purchased Tesla shares this week.

Tesla shares have fallen 0.8% so far this week. (Image: REUTERS)

Elon Musk’s Tesla seems to be back in favour with one of Wall Street’s most debated investors  — Cathie Wood. ARK Investment, the fund house run by Cathie Wood, has purchased Tesla shares this week in various tranches for various ETFs it runs. Earlier, last month Cathie Wood had sold Tesla shares worth $162 million across her ETFs. This sale came a few weeks after ARK Investment published a research note where the company predicted that Tesla’s share price could rally to touch $4,600 per share by 2026. So far this year Tesla shares have fallen 45% to close at $680.80 per share.

Massive Tesla stock purchases

ARK Innovation fund bought 15,858 equity shares of Tesla on Monday. On Monday Elon Musk’s Tesla opened for trade at $655.22 per share. At that price, the shares bought by Cathie Wood were worth $10.39 million. Further, the ARK Innovation fund purchased 22,209 equity shares of Tesla and another 3,872 equity shares of the electric vehicle company for the ARK Next Generation Internet ETF. On Tuesday, Tesla shares opened at $653.53 per share. The purchase of Tesla shares would have been roughly worth $17 million.

The buying spree of Elon Musk’s Tesla by Cathie Wood’s ARK Investment continued on Wednesday. ARK purchased 1,343 equity shares for the innovation and next-generation internet ETF. Tesla shares traded at $623.6 per share, translating to $837,494 purchase value.

Tesla shares have fallen 0.8% so far this week. The electric vehicle giant is among the largest stock holding across various funds run by ARK Invest, including ARK Innovation Fund and ARK Next Generation Internet ETF. 

Bullish on Tesla

ARK, earlier last month, had published a research note where they had projected Tesla’s stock price to hit $4,600 apiece by 2026. This is above the previous estimate of $3,000 by 2025. In their bull case scenario, ARK believes Tesla’s autonomous ride-hail revenue will be close to $486 million by 2026. Under such a scenario the target price has been further increased to $5,800 per share. 

Other ARK trades this week

Apart from Tesla, Cathie Wood has purchased shares of Roku, Block, Coinbase, Twilio, and Zoom among other stocks. ARK has also sold shares of Spotify and Sea in large quantities. On Monday ARK sold 305,139 equity shares of Sea, the company that runs Garena, Shopee, and SeaMoney. 14,205 equity shares of Sea were also sold by ARK on Wednesday. 

563,354 equity shares of Spotify were sold by ARK on Tuesday and another 306,907 shares on Wednesday. 

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