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HomeMarketARK's Cathie Wood Is Buying More Beaten-Down Tesla Stock

ARK’s Cathie Wood Is Buying More Beaten-Down Tesla Stock

Cathie Wood’s ARK funds added to Tesla positions.

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Tesla
stock has been going through a difficult patch. ARK Invest’s founder Cathie Wood used the downdraft as an opportunity to add to positions.

The
ARK Innovation ETF
(ticker: ARKK) bought 61,537 shares of
Tesla
(TSLA) on Wednesday.

Tesla has been a top holding for the fund for a while. Declines in Tesla stock have pushed it down the list of top holdings though. The Innovation fund holds more of
Zoom Video Communications
(ZM) and
Exact Sciences
(EXAS). Tesla sits in the No. 3 slot.
Roku
(ROKU) is fourth.

The ARK Innovation fund tends to invest in the highest-growth stocks, which has been a tough strategy in 2022. Those four stocks are down about 58% this year, on average. Those returns have helped push the Innovation ETF down about 63% year to date.

The
ARK Autonomous Technology & Robotics ETF
(ARKQ) and
ARK Next Generation Internet ETF
(ARKW) also bought 10,066 and 3,259 Tesla shares, respectively.

The recent Tesla buy is Wood’s third in recent weeks. Wood’s ARK bought more Tesla stock in October and again in November.

Shares, at $156.80, are below October and November levels. Tesla stock dropped dropped 2.6% on Wednesday. The
S&P 500
and
Dow Jones Industrial Average
fell 0.6% and 0.4%, respectively.

Coming into Friday trading, Tesla stock has declined 55% this year. Shares are off about 30% since CEO Elon Musk took over Twitter, underperforming the
Nasdaq Composite
Index by about 34% over that span.

Write to Al Root at allen.root@dowjones.com

Credit: marketwatch.com

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