ARK's Cathie Wood keeps buying as Tesla stock keeps falling
As Tesla shares continue to slide after Q2 earnings, ARK Invest's Cathie Wood has been adding to her position — buying roughly 160,000 shares across four ETFs, bucking the trend among Tesla's Magnificent Seven peers.
While Tesla stock has kept sliding since its Q2 earnings report, lagging its megacap tech peers, ARK Invest's Cathie Wood has treated the drop as a buying opportunity.
Per Barron's, ARK purchased roughly 160,000 Tesla shares across four funds — ARK Innovation, ARK Space & Defense Innovation, ARK Next Generation Internet, and ARK Autonomous Technology & Robotics — around the time shares fell nearly 15% in a single day following weaker-than-expected Q2 results.
Deliveries themselves held up, at roughly 480,000 vehicles in Q2, up 25% year over year, but margin and profitability concerns have kept the stock under pressure. Even so, Tesla still trades at more than 150 times expected earnings over the next 12 months, versus an average of about 24 times for the rest of the Magnificent Seven.
Wood has a history of buying into past Tesla selloffs, and this latest purchase reads as a reaffirmation of ARK's long-standing bet on Tesla's AI, Robotaxi, and Optimus growth story.
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