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Cathie Wood-led ARK Investment Management bought 176,112 shares of Tesla Inc TSLA at an estimated valuation of over $19 million on a day when the stock witnessed a significant decline.
Shares of the EV maker tumbled 12.24% on Tuesday, dragged by concerns over weakening demand and logistical problems that have hampered deliveries. Tuesday’s decline erased nearly $50 billion in market value for Tesla, which is roughly equal to the valuation of its rival Ford Motor Co, reported Reuters.
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Tesla reported fourth-quarter deliveries that came in below the tempered expectations Monday, with the company suggesting that cars in transit increased further during the quarter. The company delivered more than 405,278 cars in the fourth quarter and produced over 439,000 units. This marked a 31.33% year-over-year increase and a 17.87% sequential climb.
Goldman Sachs analyst Mark Delaney has reiterated a “buy” rating on Tesla while lowering the price target from $235 to $205.
Consecutive Purchases: This is the fifth straight day that ARK has been buying Tesla shares. Since mid-December, funds managed by ARK have bought over 652,000 shares of the Elon Musk-led company, a period where Tesla shares shed more than 31%.
Tuesday’s purchases were made via the flagship ARK Innovation ETF ARKK and the ARK Autonomous Tech. & Robotics ETF ARKQ, both of which have Tesla as their third largest holding.
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Image and article originally from www.benzinga.com. Read the original article here.