Cathie Wood-led ARK Investment Management continued to buy Tesla Inc TSLA stock this week, as the flagship ARK Innovation ETF ARKK and the ARK Autonomous Tech. & Robotics ETF ARKQ loaded up 115,787 shares of the Elon Musk-led company on Tuesday. At the same time, ARK slashed its stake in Tesla’s Chinese rival Nio Inc NIO with a big sale.
The purchase is estimated to be valued at over $15.2 million based on Tuesday’s closing price. Shares of the EV-maker closed 7.43% higher during the session and have gained over 8% in the last five days after the company announced a string of downward price adjustments in China since late last year and two rounds of price cuts in the U.S. and Europe.
Multiple analysts have sounded out their opinions on the impact of these price cuts. Jefferies analyst Philippe Houchois maintained a ‘Buy’ rating on the stock while lowering the price target from $350 to $180. BofA Securities analyst John Murphy maintained a ‘Neutral’ rating and lowered the price target from $135 to $130.
Not even two-thirds into the month, ARK’s purchase of Tesla stock has already crossed over three-quarters of a million. Since mid-December, ARK’s funds have loaded up over 1.2 million shares of Tesla.
The EV-maker is the third largest holding in the ARK Innovation fund with a weight of 6.95% while it is the top holding of the ARK Autonomous Tech. & Robotics ETF with a weight of 8.8%.
Major Sale: On Tuesday, ARK sold over 325,000 shares of the EV-maker at an estimated valuation of over $3.17 million based on the day’s closing price. Nio’s shares have gained over 18% since the beginning of 2023, according to data from Benzinga Pro.
Image and article originally from www.benzinga.com. Read the original article here.