Late on Wednesday, as the market continued its recent losses and as word spread that Elon Musk had sold $3.6 billion worth of shares over three days, Cathie Wood’s ARK investments pounced on over $12 million value of Tesla stock. The ark investment management founder bought worth about $11.7 million and wood also boosted the bet flagship Ark innovation fund, knowing coinbase globe, adding almost 297,000 shares million as of Wednesday’s close.
Despite the tremendous volatility brought on by the demise of sam bank man-FTX fried’s crypto enterprise, Ark has been making purchases in Coinbase. Tuesday saw a record that shows the low in Coinbase share prices, which only slightly improved on Wednesday.
Woods’s largest fund, Ark Disputive Innovation Strategy, has lost 60% of its value this year compared to the Nasdaq 100’s loss of 28% and the s&p 500’s decrease of 16%. The largest cryptocurrency, Bitcoin. Which is presently trading for roughly $17,600 is the aim of wood reiterated last month.
Cathie Wood’s Ark Invest Buys Tesla Stock When It Is Down
As a result of worries about the future recession, a hawkish Federal Reserve, and creator Elon Musk’s efforts to cut his investment in the electric vehicle manufacturer, Tesla shares are at their lowest point for more than two years.
According to regulatory filings, tesla, Twitter and SpaceX CEO Elon musk sold about 22 million shares at prices ranging from $155 to $177.
The disposals reduced his tesla stake to 424 million shares or approximately 13.4% of the electric-vehicle company. The total loss of the ARK innovation is around 63% which is the most significant drop among more than 230 actively traded diversified ETFs.
Ark invests in disruptive technology, including artificial intelligence, DNA sequencing, robotics, energy storage, 3D printing, electric vehicle, blockchain, fintech, and CRISPR gene editing. In January wood’s Ark invested predicted that Bitcoin could exceed $1M by 2030.
Wood is considered one of the biggest boosters of Tesla. She is the one who predicted that the electric car company would be valued at over $3 trillion in the future market. Wood’s investment identifies high-impact innovations and she focuses on the platforms which are the prominent areas of growth and brings a change in the global economy.
In April 2022, ARK invested cited a target of $4,600 by 2026 while tesla is currently trading around $274. In 2021 ARK sold some of its Tesla holdings but it was a profit rather than an outlook change.
In the case of Coinbase, Ark has been the shareholder in April 2021 since the company went public. Wood explained the promising future of cryptocurrency according to the prediction of Bitcoin’s price which would rise to almost $1 million within eight years.
Even though Tesla has been subjected to many lawsuits which include increasing government scrutiny, public controversies rising from the statement, journalistic criticism, worker rights violation, and controversies arising from Elon musk.
It proved to be one of the most revenue-making companies and remains the world’s most valuable automobile maker with a capital capitalization of more than $550 billion.
When compared to other automobile companies, tesla had the most worldwide sales of battery electric vehicles and plug-in electric vehicles in 2021. Tesla‘s global sales were 936,221 cars in 2021 which is an 87% increase over the previous years.