Cathie Wood-led Ark Investment Management on Thursday bought shares in Tesla Inc (NASDAQ:TSLA) on the dip and also raised its exposure in the U.S. listed Chinese electric vehicle maker Xpeng Inc (NYSE:XPEV).
The popular investment management firm bought 1,252 shares — estimated to be worth $1.09 million — in the Elon Musk-led company on the day shares of the company closed 5.09% lower at $876.3 a share.
Tesla shares are down about 27% year-to-date.
Wood, a Tesla bull, had in late January resumed buying shares in Tesla after months of profit-booking in the stock that climbed higher in the fourth quarter of 2021.
Ark Invest returned to buying shares in the electric vehicle company after shares fell again following a series of developments, including Musk’s revelation that Tesla is currently not making a $25,000 electric car.
Tesla on Thursday accused U.S. regulators of harassing Musk over his compliance with a 2018 regulatory settlement that sought to restrict his use of social media. Tesla has also been involved in recalls this month.
The St. Petersburg, Florida-based Ark owns shares in Tesla via the Ark Innovation ETF (NYSE:ARKK), the Ark Next Generation Internet ETF (NYSE:ARKW) and the Ark Autonomous Technology & Robotics ETF (BATS:ARKQ).
See Also: Cathie Wood Continues Buying-Spree In Tesla And This Rival Chinese Automaker
The three ETFs held 1.57 million shares — worth $1.45 billion — in Tesla, prior to Thursday’s trade.
Wood expects Tesla stock to hit a $3,000 price target by 2025.
Ark Invest also bought 56,159 shares — estimated to be worth $2.2 million — in Xpeng.
The Guangzhou, China-based Xpeng shares closed 0.54% higher at $39.4 a share on Thursday. The stock is down 22% year-to-date.
Xpeng recently included its ordinary shares, which trade on The Stock Exchange of Hong Kong Limited (HKEX), in the Shenzhen-Hong Kong Stock Connect program to boost investor reach in mainland China.
The electric vehicle maker has in recent months navigated the chip crisis to deliver more volume than local rivals Nio Inc (NYSE:NIO) and Li Auto Inc (NASDAQ:LI).
Photo: Courtesy of Xpeng
