Tesla bull ARK Invest is loading up on TSLA once more amid ongoing dip

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One of Tesla’s most ardent bulls, ARK Invest, appears to have started loading up on TSLA shares once more. The investment firm’s recent buying spree was reflected in its daily trading activity, which showed that ARK had increased its TSLA holdings during the electric car maker’s steep 20% dive on Tuesday.

Interestingly enough, three of ARK Invest’s funds added TSLA on Tuesday, as shown in data compiled by Joshua Tree Analytics. Overall, it appears that amidst TSLA’s recent dive, which seems to have been partly driven by the company’s $5 billion stock offering and its non-inclusion into the S&P 500 index, has encouraged one of Tesla’s most ardent bulls to stock up on shares once more.

ARK Invest is one of Tesla’s most notable supporters, keeping one of the most optimistic long-term price targets for the electric car maker. The financial firm is one of few that consider the potential of Tesla’s Autopilot and Full Self-Driving suite, as well as the rollout of Elon Musk’s Robotaxi network. These, ARK believes, are key innovations that could make Tesla one of the most important companies in the market.

ARK Invest Founder and CIO Cathie Wood has also been one of the most vocal Tesla supporters. During Elon Musk’s brief take-private attempt, Wood was among those who opposed the idea, sending a letter to the CEO explaining why taking TSLA private at $420 per share is premature. Amidst Tesla’s monster rally in recent months prior to its 5-for-1 stock split, Wood also noted that ARK still believes that Tesla is undervalued.

With ARK Invest loading up on TSLA once more, it may not be long before other bulls like Baillie Gifford start increasing their holdings once more. Just recently, Baillie Gifford, a longtime TSLA supporter, ended up with an “enforced” reduction because its stake had grown too large. Yet even after selling TSLA, Baillie Gifford partner James Anderson stated that the firm will be ready to increase its stake again once the opportunity arises.

Following its recent dive, Tesla appears to have started recovering as well. After rising 6% in Wednesday’s pre-market, the electric car maker built some momentum after the opening bell. As of writing, TSLA stock is trading up 10.11% at $363.59.

Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.

Tesla bull ARK Invest is loading up on TSLA once more amid ongoing dip





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