Tesla Stock: Ark's Vote of Confidence Meets Production Cut Rumors

Tesla's Stock: Confidence Boost from Ark, But Production Rumors Weigh

Last week, Ark Investment Management, led by Cathie Wood, provided a vote of confidence in Tesla (TSLA) by purchasing shares after a dip in the stock price.

Ark's Purchases Buck the Tesla Slide

On Friday, three of Ark's actively managed ETFs scooped up Tesla shares:

• Ark Innovation ETF (ARKK): 90,915 shares
• Ark Next Generation Internet ETF (ARKW): 20,416 shares
• Ark Autonomous Technology & Robotics ETF: 5,077 shares

Totaling 116,408 shares, these purchases were valued at approximately $19.89 million. Notably, Ark had already acquired 216,682 Tesla shares worth $35.21 million on March 14 amid a previous stock weakness.

Production Cut Rumors Spook Investors

Tesla's stock price had declined earlier in the week, possibly due to a Bloomberg report that the company had requested its Giga Shanghai factory to reduce its workweek shifts from 6.5 to 5 days. This news raised concerns among investors, who were already apprehensive about a potential shortfall in first-quarter sales.

Details of Ark's Tesla Purchases

Ark's latest Tesla purchases are a significant vote of confidence, especially given the recent stock price decline. The company's long-term outlook remains positive, despite the short-term headwinds.

Ark Trims Holdings in Crypto-Related Companies

While showing support for Tesla, Ark has been trimming its holdings in cryptocurrency-related companies. This comes amid a recent cool-off in the cryptocurrency market, which has seen Bitcoin (BTC) fall from its mid-March high of over $73,500.

On Friday, Ark sold 217,610 Coinbase (COIN) shares (valued at approximately $55.60 million) and 314,789 Robinhood (HOOD) shares (valued at approximately $5.76 billion). Despite these sales, Coinbase remains ARKK's top holding, with a value of approximately $830.98 million.

Conclusion

Ark's confidence in Tesla is a reminder of the company's long-term growth potential, despite short-term challenges. The recent production cut rumors have raised some concerns, but the company's fundamentals remain strong. Ark's continued investment in Tesla underscores its belief in the company's future success.