Cathie Wood of Ark Investment Management took advantage of the dip in Tesla Inc (NASDAQ: TSLA) shares to pile on the stock for the company’s exchange-traded funds, Bloomberg reported Tuesday.
What Happened: Three of Ark’s ETFs — Ark Innovation ETF (NYSE: ARKK), Ark Autonomous Technology & Robotics ETF (BATS: ARKQ), and Ark Next Generation Internet ETF (NYSE: ARKW) purchased a total of 240,548 Tesla shares on Tuesday, Bloomberg noted — citing a company email.
The Ark purchase is valued at $168.105 million, as of Tuesday’s closing price.
“We love the liquidity that this provides us, we think it’s very healthy, a very healthy shakeout,” Wood told Bloomberg.
“All I know is we are keeping our eyes on the prize and the prize just got a little bit more interesting.”
The Ark CEO said, “Corrections are good, they keep us all humble,” adding that the strongest bull markets she had been in were “built on walls of worry.”
The automaker’s shares fell to as low as $619 on Tuesday, an intraday decline of 13%.
Why It Matters: Ark’s main ETF — Ark Innovation ETF closed 3.3% lower on Tuesday and gained 0.32% in the after-hours session. ARKK fell as low as 11.8% intraday.
Wood remains bullish on Tesla, citing the value of the company’s data and the $7 trillion dollar opportunity in the autonomous ride-hailing market, of which the automaker could grab a significant chunk.
“Tesla is in the pole position in the United States to become the autonomous taxi network. Autonomous is going to submit to natural geographic monopolies, so in the U.S. our confidence in Tesla has gone up,” said Wood.
Price Action: Tesla shares rose 2.53% higher at $716.50 in the after-hours session on Tuesday and closed the regular-session nearly 2.2% lower at $698.84.
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