Cathie Wood’s Latest Purchase
Cathie Wood’s Ark Invest increased its holdings in Tesla, Inc. (NASDAQ:TSLA) as the stock continued its downward trend. The firm purchased 111,802 Tesla shares, valued at $24.47 million, on Friday. This marked the second consecutive purchase, bringing the total weekly purchases to around $50 million.
Tesla’s Significance in Ark’s ETFs
Tesla is the second-highest holding in Ark’s flagship exchange-traded fund, the ARKK, with a weighting of 7.90%. The stock also plays a significant role in the Ark Autonomous Technology & Robotics ETF (ARKQ) and the Ark Next Generation Internet ETF (ARKW).
Historical Context and Current Performance
Tesla’s stock witnessed a 101% surge in 2023, with much of the gains occurring in the early part of the year. However, a series of price cuts and pressure on core auto margins led to a decline in the stock’s value in the second half of the year, a trend that has continued into 2024. The stock is down 11.91% in January, influenced by a tech sector sell-off and concerns about the company’s price cuts in China. Analysts anticipate a decline in fourth-quarter earnings and revenue, further contributing to the downward pressure on the stock.
Implications for Investors
Tesla’s upcoming fourth-quarter earnings report, scheduled for release on January 24, is anticipated with interest, particularly for insights into the company’s core auto gross margin and 2024 deliveries guidance. Investors are likely to closely scrutinize these details for signs of a potential turnaround in the company’s fortunes.
