Long-time Tesla (TSLA) bull Cathie Wood is looking a little slower these days.
Elon Musk-led electric car giant Tesla stepped down as the largest company in ARK Invest's flagship ARK Innovation ETF (ARKK) late last week for the first time in almost five years, as the fund slightly reduced its value in the company. in recent months.
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| After selling down Tesla position |
Now, Wood is once again snatching the shares of the stock down.
ARK Investment Management has bought an estimated 28 million Tesla shares since Monday as sharp sales of technology peers deepened losses in heavy stocks. The move comes after Zoom (ZM) overturned Tesla as the largest company in ARKK, with the second largest car manufacturer in the portfolio as the market closed on Wednesday. ARK Invest declined to comment.
"Tesla has been down every day, so it will be difficult to maintain a position where the stock is very cramped, but I also think it shows a slight change in confidence," David Trainer, CEO of Investment Research Investment Company New Constructs, told Yahoo Finance.
"A lot has happened in the last few months that would give anyone who feels they have to think about what to think about Elon Musk and the businesses he participated in."
Wood, however, remains a Tesla supporter of the voice.
When the world's largest electronics maker was released on the S&P 500 ESG index last week, Wood came to defend Musk on Twitter and called the move "ridiculous."
Wood also told Yahoo Finance in an April interview that "his confidence remains very high for Tesla." The comments came after Wood revealed that ARK had met with General Motors ’(GM) chief executive Mary Barra and was open to invest in a legacy company - a move the company followed a few weeks later.
Earlier this month, Ark Invest sold 15,862 shares in Tesla, valued at approximately $ 12.7 million, and acquired 158,187 shares in General Motors on behalf of the Autonomous Technology & Robotics (ARKQ) ETF.
The move marked a significant change in Wood, which has been widely criticized by car manufacturers, and in the past few months that traditional car manufacturers such as GM and Ford (F) "do not have the DNA" to make themselves into electric cars. space and may be lost.
"One of the things we need to be aware of is that we should not be so narrow-minded," Wood told Yahoo Finance about the company's negotiations with GM. "And when we see success, we have to acknowledge and learn more about it, so we are in the process of finding the truth."
Tesla's low level in ARK's portfolio, however, is accompanied by growing concern among investors over Musk's hot and cold pursuit of a Twitter (TWTR) purchase agreement and questions that the purchase could divert his attention from Tesla.
ARK Innovation’s position in the electric car maker now accounts for 8.3% of the total portfolio, according to the company’s latest available data, placing it below 9.4% on top of Zoom’s grip. Tesla also fell behind Roku (ROKU) earlier this week. Prior to the downturn, Tesla held the chair as ARKK's heaviest stock for four and a half years, Bloomberg data showed.
ARK sold Tesla shares for four consecutive quarters before its recent acquisition, with total shares at 1.59 million by the end of the first quarter, down from about 5.79 million in the same period last year.
"He has a responsibility to make sure he doesn't lose a lot but he also knows that because of the sale he shows a lack of confidence, which is dangerous for a former supporter of the community," the coach said. "I think what it says to smart investors is that Cathie Wood has no analytical basis for doing what she does."
Until recently, Tesla had been a top player in the ARK Innovation Wood fund as some elements sent a huge loss. Last quarter, Tesla was the main contributor to ARKK, adding 40 points, or 0.4%, to the fund for a three-month period ending March 31 as ARKK posted a quarter loss of 29.93%. Roku and Zoom, now among the top three fundraisers, were the biggest fund reductions, accounting for 2.9% and 2.3%, respectively, of total fund losses for the period.
