Cathie Wood bought Tesla Inc. shares as they plunged the most in four months after the electric carmaker’s third-quarter deliveries missed expectations.
Funds backed by Wood’s Ark Investment Management LLC bought 132,213 shares in Elon Musk’s company on Monday, marking the firm’s first purchase of Tesla since mid-June, according to data compiled by Bloomberg.
Tesla fell 8.6% on Monday, the most since June 3, as shipment issues and chip shortages weighed on deliveries. It was also the worst performer in the S&P 500 Index, which notched its best day since July 27. The stock rose 3% in premarket trading on Tuesday but it’s still down 31% this year, underperforming the US benchmark.
This is Wood’s second purchase in Tesla in 2022 after a year of selling down her stake. The first was in June, days after Tesla lost its crown jewel status in her main fund, a position it had held for about four-and-a-half years.
The latest purchases add to evidence that Cathie Wood is on a dip-buying binge again.
Ark had sold Tesla shares for at least five quarters in a row as of end-June, Bloomberg data show.
The purchases on Monday were made by the flagship Ark Innovation ETF and Ark Next Generation Internet ETF.
Ark’s main ETF has plunged 60% in 2022 as historical tightening by the Federal Reserve and global recession fears batter growth stocks.
This article was provided by Bloomberg News.