Cathie Wood-LED ARK Investment Management bought a large share of Tesla Inc TSLA on Thursday after shares of the EV maker fell over 9% post-CEO Elon Musk‘s comments on price cuts.
What happened: Funds operated by ARK bought over 256,000 shares of the electric vehicle maker’s stock at an estimated value of over $41.7 million based on Thursday’s closing price. The purchase was made through the flagship ARK Innovation ETF ARKK and the ARK Next Generation Internet ETF ARKW.
Tesla is the largest holding in ARKK, with a 9.38% weighting, according to data available on the company’s website at the time of writing.
Shares of Tesla closed 9.75% lower on Wednesday after Musk indicated the EV maker will continue to cut prices despite a margin slump. Tesla’s operating margin fell 779 basis points to 11.4% in the first quarter compared to the same period a year ago.
Musk, however, defended the EV maker’s drastic margin decline, saying the pursuit of higher volumes and a larger fleet is the right choice over lower volume and higher margin.
“We anticipate that over time our vehicles can make significant gains through autonomy. So we believe that this is where we lay the foundations, and then it’s better to ship a large number of cars at a lower margin, and subsequently, reap that margin in the future as we perfect the autonomy. This is an extremely important point,” Musk said during the conference call.
The EV maker reported revenue of $23.33 billion for the first quarter, up 24% year over year.
Main sale: ARK has sold over 739,000 shares in the e-commerce company Shopify Inc BUSINESS on Thursday at an estimated valuation of over $35 million based on Thursday’s closing price. The company’s shares are up over 34% year-to-date.