Cathie Wood’s Ark Invest Buys $18 Mln Tesla (TSLA) Shares Amid Bad Earnings

Cathie Wood’s Ark Invest jumped the bandwagon of buying the dip. In an elaborate trade on Monday, the investing firm bought Tesla shares with the largest transaction being of 122,752 Tesla (TSLA) shares, worth roughly $18.05 million. The purchase was spread among three ARK funds—ARKK, ARKQ, and ARKW.

Ark Invest Buys Tesla Shares (TSLA)

This significant purchase in the market leader in electric vehicles is in line with ARK’s strategy; during the past several days, the company has been collecting Tesla stock, indicating a strong belief in the company’s potential for future growth.

Previously Ark bought Elon Musk’s Tesla (TSLA)shares when they had fallen over 10% due to disagreements with OpenAI, the proceeds were utilized to further enhance interest in the company. ARKQ acquired 5.684 TSLA shares, ARKK acquired 61,073 shares, and ARKW acquired 13,199 shares at that time.

Read Also: US Charities See Boom in Crypto Donation, Raise $2B

Tesla (TSLA) Misses Analyst Estimates for Earnings

Tesla missed analyst projections when it revealed its first-quarter sales dip of 9% on Tuesday, the most since 2012. According to CNBC, the electric vehicle maker is still dealing with the fallout from continuous price reductions. Revenue fell from $25.17 billion in the fourth quarter to $23.33 billion a year earlier. From $2.51 billion, or 73 cents per share, a year earlier, to $1.13 billion, or 34 cents per share, net income fell by 55%.

The company’s previous revenue decline in 2020 was caused by production disruptions during the COVID-19 pandemic, but this time the decline was far more severe. In the first three months of 2024, Tesla’s automotive revenue fell 13% year over year to $17.38 billion.

Tesla (TSLA) reaffirmed its negative forecast for 2024 in its shareholder deck, warning investors that the “volume growth rate may be notably lower than the growth rate achieved in 2023.”

Due to worries about the company’s continuous price reductions, lackluster deliveries, and competition in China, Tesla’s shares have fallen more than 40% this year. Tesla said earlier this month that first-quarter vehicle deliveries were down 8.5% compared to the same period last year.

Read Also: Will Bitcoin Halving Reignite Institutional Investors’ Inflows?

The post Cathie Wood’s Ark Invest Buys $18 Mln Tesla (TSLA) Shares Amid Bad Earnings appeared first on CoinGape.