Shares of Tesla closed 8.05% lower on Tuesday after a string of brokerages reduced their price targets on the stock. Analysts reportedly said investors are concerned that Elon Musk may have to sell shares further to fund Twitter and sentiment around the acquisition of the company could hurt the EV-maker's brand.
However, Cathie Wood-led ARK Investment Management continued with its Tesla buying spree on Tuesday with the flagship Ark Innovation ETF ARKK loading up over 19,000 shares of the EV maker at an estimated valuation of over $2.6 million. Tesla is the third largest holding of the ETF with a weight of 7.44%.
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Tesla stock has been witnessing intense selling pressure as investors continued to worry that Elon Musk's increased focus on the social media platform could take away from time spent on the EV-maker. The stock closed below the crucial $150-mark on Monday and has lost over 17% in the last month. Several analysts also cut price targets on the stock on Tuesday.
GLJ Research's Gordon Johnson took swipes at Tesla as the automaker's stock continued to bleed. "It's just a car company that has built too much capacity they can't sell," Johnson said on CNBC's "Squawk Box."
However, despite the continued decline in the stock price, ARK has remained persistent with its bullish stance on Tesla. On Monday, the ARK Autonomous Technology & Robotics ETF ARKQ purchased over 27,000 shares of the company. Last week, Wood’s cumulative Tesla stock buys totaled 111,842 shares or $17.42 million.
Other Buy: ARK also bought over 15,000 shares of digital media player-maker Roku Inc ROKU at an estimated valuation of over $682,000.
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