Tesla presented quarterly results and they were not what investors expected. This led to a value correction which was used by Cathie Wood, founder of Ark Investfor buy more shares of the firm according to Abhishek Vishnoi on Yahoo Finance.
Wood’s flagship fund, Ark Innovation ETFI buy 66,190 shares in Elon Musk’s companywhich marks the second purchase of his firm at the electric vehicle maker this month, according to data from Bloomberg. The fund bought a tranche after Tesla reported a delivery failure on Oct. 4.
This is the first time the company misses revenue estimates from Q3 2021Bloomberg data shows. Musk was not optimistic on the outlook for demand, citing the recessions in China and Europe and interest rate hikes by the Federal Reserve.
Musk’s cautious outlook outperformed his speech to analysts at “an epic end of the year” and his view that Tesla to be bigger than the combined valuation of Apple and Saudi Aramco one day. The shares of the electric vehicle manufacturer fell 6.7% in New York on Thursday, extending this year’s drop to 41%.
Tesla was the only stock that Ark Investment Management LLC bought on Thursday. On the other hand, the funds Ark sold Nvidia, Crispr Therapeutics, and a few other gene-editing bets.
Ark’s main ETF has plunged 63% this year. The Federal Reserve’s historic tightening has pushed major economies to the brink of recession, hitting growth stocks along the way.
Tesla closed the session at $207.28, leaving two identical candles after a bearish gap, and the 70 and 200 period moving averages remain above the price. Meanwhile, Ei indicators are mostly bearish.