Cathie Wood-led Ark Invest scooped up more shares in Tesla Inc (NASDAQ:TSLA) on Tuesday, a day after the money managing firm resumed buying shares in the Elon Musk-led company. The stock has plunged 37% in a month in the backdrop of production issues in China and the billionaire entrepreneur’s bid to buy Twitter Inc (NYSE:TWTR) for $44 billion.
The popular money managing firm bought 26,081 shares — estimated to be worth $16.38 million— in the Austin, Texas headquartered electric vehicle maker.
Tesla shares closed 6.9% lower at $628.16 on Monday, sinking to their lowest levels since June. The stock has declined over 37% over the past month and over 45% since April 4, when Musk revealed a significant stake in Twitter.
Ark Invest had been booking profits in its Tesla stake since late February before the EV maker was hit by strict COVID-19 curbs in Shanghai, until Monday, when it resumed buying.
See Also: Cathie Wood Scoops Up $10M In Tesla As Stock Crashes 32% In A Month
Growing competition in the sector and Musk’s Twitter ‘circus show’ and ‘soap opera' too have contributed to the stock weakness, according to some analysts.
St. Petersburg, Florida-based Ark Invest owns shares in Tesla through three of its six actively traded exchange funds: Ark Innovation ETF (NYSE:ARKK), Ark Autonomous Technology & Robotics ETF (NYSE:ARKQ), and Ark Next Generation Internet ETF (NYSE:ARKW).
The three ETFs held 1.29 million shares worth $873 million in Tesla before Tuesday’s trade.
The value of Tesla holdings that Ark Invest owns has shrunk by more than half since the beginning of the year.
Long-time Tesla bull Daniel Ives, an analyst at Wedbush Securities, last week lowered his price target for Tesla to $1,000 from $1,400, citing the issues in China.
The analyst also believes Musk’s 'circus show' with respect to the Twitter acquisition has been a major overhang on Tesla's stock and a black eye for Musk for the way he has handled the “spiraling situation.”
See Also: Tesla Bull Cathie Wood Says Bet Against 'Disruptive Innovation' Will Prove Ill-informed, Ill-timed
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