Cathie Wood Buys The Dip As Tesla Stock Heads Lower

Cathie Wood and her ARK Invest firm are buying the dip on Tesla (TSLA) as Elon Musk’s EV giant slides after a massive run to start the year. Tesla stock retreated Thursday.

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Wood and ARK Invest on Wednesday purchased 51,960 shares of TSLA stock for the ARK Innovation ETF (ARKK) and 17,369 shares for the ARK Next Generation Internet ETF (ARKW), according to a Wednesday night investor update. The total 69,356 shares of Tesla are worth $12.62 million based on Wednesday’s closing price of 182.

Tesla Stock Buzz Kill

Wood’s funds consistently added Tesla shares in December in January, purchasing about 1.3 million during the months, according to Barron’s data. About 1.1 million of those were for the ARK Innovation ETF.

Tesla stock dropped in six of the past seven sessions after opening the year with a major 113% run up. But limited details from Tesla’s investor day last week, new safety investigations into the Model Y and analyst price downgrades killed the momentum.

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Shares pulled back from their Feb. 16 peak at 217.65 after failing to reclaim their 200-day moving average. TSLA is trading below its 21-day moving average and is down 12.2% so far this month.

Tesla stock fell 4.99% to 172.92 Thursday. ARKK shares retreated 4.16%  while ARKW stock fell 4.37% on Thursday.

You can follow Harrison Miller for more stock news and updates on Twitter @IBD_Harrison

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