Cathie Wood‘s ARK Invest continues to be bullish about Tesla (NASDAQ:TSLA) and has bought 65,514 shares of the EV major worth $14 million. Wood’s Ark Innovation ETF (ARKK) bought these shares and another 133,334 shares worth $28 million earlier this week.
Currently, Tesla is ARKK’s second top holding with a weightage of 8.7% in the ETF.
Wood’s bullish stance on Tesla comes at a time when the company is struggling in both the U.S. and China. In the U.S., the company is facing production challenges at its factory in Fremont, California, while in China, it is struggling with sluggish demand amid rising domestic competition.
Tesla’s woes have resulted in the stock sliding by more than 25% year-to-date. However, Wood remains a fan of the company. In an interview with CNBC earlier this year, Wood stated that over the next five years, she expects electric vehicles to dominate car sales. At that time, the investor expects TSLA to reach new highs, and Wood anticipates selling the stock then amid the EV excitement.
What are the Top Holdings in ARKK?
Besides Tesla, ARKK’s other top four holdings include Coinbase Global (NASDAQ:COIN), Roku (NASDAQ:ROKU), Block (NYSE:SQ) and UiPath (NYSE:PATH).
ARKK has gained by more than 25% over the past year and overall, analysts remain cautiously optimistic about ARKK with a Moderate Buy consensus rating based on 29 Buys, eight Holds, and one Sell. The average ARKK price target of $61.85 implies an upside potential of 23.5% at current levels.
