Tesla Inc TSLA had the worst trading day in the stock's history Tuesday — but it seems Ark Invest's Cathie Wood may see an opportunity in the pullback.
On Sept. 8, Ark was buying back shares of Tesla, according to JoshuaTA on Twitter.
Back in May, Ark sold 17% of its stake in Tesla due to the stock's volatility. Despite this, Tesla never lost its position as Ark Invest's No. 1 holding.
Ark Invest is known for its $7,000 2024 price target for Tesla, issued before the stock's 5-for-1 split.
Benzinga's Take: Being that Ark Invest is one of Tesla's biggest bulls, this is not too surprising.
A price drop on a favorite investment is usually a good time to buy. At the same time, much of Ark's action is regulated by the contract they have with their investors, so they cannot hold too much Tesla at one time, which could cause another selling event if the stock rises too quickly.
Picture courtesy of Tesla.
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