Cathie Wood-LED ARK Investment Management charged Tesla Inc TSLA Stocks on a day when the stock is down over 4%.
What happened: ARK, which is known to have defied Wall Street’s negative stance on Tesla on a number of occasions in the past, bought over 190,000 shares of the electric vehicle maker at an estimated value of over $29 million based on Wednesday’s closing price.
The purchase was made through the flagship ARK Innovation ETF ARKK that has Tesla as a top holding company and the ARK Next Generation Internet ETF ARKW.
Tesla stock experienced another jolt on Wednesday after that Jefferies analyst Philip Houchois downgrade from buy to hold and price target lowered to $185 from $230. Tesla’s accelerated transition to a world of sustainable energy and resource efficiency may slow EV adoption and accelerate profit normalization for the industry, Houchois said in a note.
Price promotion: April wasn’t a good month for the stock, especially after the boss’s earnings announcement Elon Musk claimed he prefers volume over margin. Over the past month, the stock has lost over 19%. Year-to-date, however, the stock is still up 42%.
That’s good for ARK, which has said its updated open-source Tesla model projects the stock hitting $2,000 in 2027.
Last week, ARK had overcharged Tesla shares $41.7 million in a single day.
Miscellaneous Buy: Funds operated by ARK also increased the proportion of Beam Therapeutics Inc BEAMafter buying over 115,000 shares of the biotech stock at an estimated value of over $3.5 million based on Wednesday’s closing price.