On Monday, Tesla, Inc. (NASDAQ:TSLA) encountered a significant intraday drop in its stock price, sparking concerns among investors about a potential miss in first-quarter deliveries. However, the stock managed to rebound later in the trading session, ultimately finishing the day with only moderate losses. Despite the temporary setback, Cathie Wood’s Ark Invest saw an opportunity to bolster its position in Tesla, opting to acquire additional shares on the same day.
Ark Invest, through its flagship Ark Innovation ETF (NYSE:ARKK) and Ark Next Generation Internet ETF (NYSE:ARKW), seized the moment and purchased 84,164 shares of Tesla on Monday. The investment amounted to approximately $14.75 million, calculated based on Tesla’s closing price of $175.22. Tesla holds a substantial position in ARKK’s portfolio, ranking as the second-largest holding in terms of share value and accounting for an 8.68% weighting in the ETF. Cathie Wood remains optimistic about Tesla’s long-term prospects, often praising CEO Elon Musk as the “Renaissance Man” of our era. Ark Invest has projected Tesla’s stock price to reach $2,000 by the year 2027.
Despite concerns surrounding Tesla’s first-quarter delivery numbers, Wood and Ark Invest continue to express confidence in the company’s growth trajectory, consistently purchasing shares during periods of market weakness. Tesla is slated to announce its first-quarter deliveries on Tuesday, with analysts forecasting a decline compared to the previous year. However, Gary Black, Manager Partner at Future Fund and a Tesla investor, believes that even if Tesla falls short of delivery expectations, the stock could rally if the company manages to avoid a year-over-year decline in sales.
In addition to acquiring more Tesla shares, Ark Invest adhered to its strategy of offloading holdings in companies with exposure to cryptocurrencies, such as Robinhood Markets, Inc. (NASDAQ:HOOD) and Coinbase Global, Inc. (NASDAQ:COIN). Despite reducing its stake in Coinbase, the cryptocurrency exchange remains ARKK’s top holding, with Ark holding $773.03 million worth of Coinbase shares, representing nearly 10% of the fund’s total portfolio. The cryptocurrency market experienced weakness on Monday, with Bitcoin (CRYPTO: BTC) slipping below the $70,000 mark.
Ark Invest also continued to trim its position in Nvidia Corp. (NASDAQ:NVDA), aligning with its recent divestment strategy for the stock. Despite these adjustments, Ark Invest remains committed to its investment thesis, actively managing its portfolio to capitalize on long-term growth opportunities.