Cathie Wood buys more into Tesla

Ark Investthe company headed by Cathie Woodacquired stakes in Tesla Inc. (NASDAQ:TSLA) for the second consecutive day on Tuesday, after having resumed investing in the leader in electric vehicles. The title plunged 37% in one month due to production problems in China and the takeover offer from Twitter Inc. (NYSE:TWTR) for $44 billion advanced by Elon Musk.

The famed fund manager snapped up 26,081 shares, valued at $16.38 million, of the Austin, Texas automaker.

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On Monday, Tesla’s share price fell 6.9% to $628.16, touching its low since June. The stock is down more than 37% in the past month and more than 45% from April 4, when Musk revealed a large stake in Twitter.

Ark Invest had posted big profits in the firm since late February, before the electric vehicle maker was hit by the strict lockdown imposed in Shanghai, until Monday, when the investment firm did not resumed shopping.

Growing competition in the industry, not to mention Musk’s “circus” and “soap opera” on Twitter, also contributed to the stock’s weakness, some analysts said.

Ark Invest, based in St. Petersburg, Florida, owns stakes in Tesla through three of its six exchange-traded funds: Ark Innovation ETF (NYSE:ARKK), Ark Autonomous Technology & Robotics ETF (NYSE:ARKQ) and Ark Next Generation Internet ETF (NYSE:ARKW).

In Tuesday’s trades, the three ETFs owned a total of 1.29 million TSLA shares, with an aggregate value of $36.64 billion.

The value of the stakes held by Ark Invest has more than halved since the start of the year.

Last week, longtime bull EV leader and Wedbush Securities analyst Daniel Ives revised his price target down from $1,400 to $1,000 due to the problems in China.

The expert also thinks the ‘circus’ over the Twitter acquisition was a major overhang on Tesla shares and a black eye for Musk, considering how the ‘situation has escalated’.

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