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Cathie Wood Buys $19 Million In Tesla Stock As New ‘Major Worry’ Emerges

    Cathie Wood Buys $19 Million In Tesla Stock As New 'Major Worry' Emerges

    The firm led by Cathy Wood, chief stock picker at Arch Invest, bought millions worth of Tesla during the electric vehicle maker’s worst daily decline in more than two years, as Wood initially doubled its wealth.

    Wood’s flagship Arc Innovation ETF bought 145,000 Tesla shares worth $15.7 million at the automaker’s closing price of $108.10 on Tuesday, while Arc’s Autonomous Technology & Robotics ETF bought 31,000 Tesla shares worth $3.4 million.

    The purchases came amid Tesla’s 12.2% drop on Tuesday, its biggest single-day decline since September 2020. The stock is now down nearly 75% since November 2021. 80% from its 2021 peak and hovering at its lowest level since mid-2017.

    Tesla, whose decline last year was largely driven by the unpopular actions of its CEO Elon Musk, is now facing a new major concern with waning demand for its vehicles, especially in the crucial Chinese market. In, Dan Ives and John Katsingris wrote in a Wednesday note.

    Wood, who invests in companies engaging in “disruptive innovation,” made millions in the early days of the pandemic on Tesla and other favorites before a brutal selloff wiped out Ark’s profits in 2022. Arc owns about $487 million in Tesla, its fifth-largest holding, most of which is in its Signature ETF, which last month added more than 300,000 shares of Tesla to its portfolio.

    While an unfavorable macroeconomic environment and rising interest rates dragged down the market as a whole, Tesla’s decline coincided largely with Elon Musk’s purchase of Twitter, much to the displeasure of Wall Street. Devotes most of the time and financial resources.

    Wood has remained bullish during the downturn, predicting last month that Tesla shares would reach $1,500 by 2027, representing more than a tenfold increase. It’s a thorn in the coming year for Tesla that will either lay the groundwork for its next chapter of growth or continue its slide from the top of the perch with Musk, Ives and Katsingris on Wednesday.

    For his long eye for high-growth stocks, Wood gained some notable detractors amid Arch’s fall from grace, including hedge fund billionaire Daniel Loeb. The values-centered Loeb last month accused Wood on Twitter of being little more than a meme trader.

    Or as Loeb put it, a “stonk” holder, referencing Wood’s manifesto that argued against using long-accepted accounting and fundamentals for valuation. The companies that hold the Arch.

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