Cathie Wood bought more Tesla Inc. shares as the stock tumbled after the electric-vehicle bellwether reported lackluster quarterly sales and said it will miss broad annual growth targets for the year.
Wood’s flagship fund Ark Innovation ETF bought 66,190 shares in Elon Musk’s company, marking her firm’s second purchase in the EV-maker this month, according to Bloomberg data. The fund bought a tranche after Tesla reported a miss in deliveries on Oct. 4.
This is the first time the company missed revenue estimates since the third quarter of 2021, Bloomberg data show. Musk wasn’t upbeat about demand prospects citing downturns in China and Europe and the Federal Reserve’s interest rate increases.
Musk’s cautious outlook overpowered his pitch to analysts of “an epic end of year” and of his vision for Tesla to become bigger than the combined valuation of Apple Inc. and Saudi Aramco one day. The EV-maker’s shares fell 6.7% in New York on Thursday, extending this year’s plunge to 41%.
Tesla was the only stock that Ark Investment Management LLC bought on Thursday. On the other hand, Ark funds sold Nvidia Corp., Crispr Therapeutics AG and some other gene-editing bets.
Ark’s main ETF has plunged 63% this year. Historical tightening by the Federal Reserve has brought major economies near the doorstep of recession, battering growth stocks along the way.
This article was provided by Bloomberg News.