Tesla Motors, Inc. (NASDAQ:TSLA), NIO Inc. (NYSE:NIO) – Cathie Wood continues to buy Tesla and this rival Chinese automaker
Cathy Wood-LEDs Ark Investment Management on Tuesday further increased its exposure in Tesla Inc. (NASDAQ: TSLA) and the US-listed Chinese electric vehicle maker Xpeng Inc. (NYSE: XPEV).
The popular stock-picking firm bought 7,132 shares — valued at $6.64 million based on the last closing price — of the Elon Musk-led Tesla.
Tesla stock closed down 0.58% at $931.25 per share. The title is down 22.4% since the start of the year.
After months of booking profits in Tesla, St. Petersburg, Florida-based Ark Invest resumed buying shares of the electric vehicle company as shares tumbled last week after Musk told investors that Tesla was not currently making a $25,000 electric car.
Ark Invest owns shares of Tesla through the Ark Innovation ETF (NYSE: ARKK), the Ark Next Generation Internet ETF (NYSE:ARKW) and the Ark Autonomous and Robotics Technology ETF (BATS: ARKQ).
The three ETFs held 1.54 million shares – worth $1.44 billion – in Tesla, prior to Tuesday’s transaction.
Musk told investors last week that Tesla did not plan to produce any new vehicle models this year and that it was more important to develop the humanoid robot and focus on autopilot, or fully autonomous driving.
See also: Cathie Wood buys $39.5m worth of Tesla stock on Monday – also charges into this Chinese EV rival
Tesla on Tuesday recalled nearly 54,000 of its electric cars linked to its driver assistance feature; although none of the cars needed to be taken to a repair shop.
Wood, who is a Tesla bull, has set a price target of $3,000 for the maker of the Model 3 and Model S electric sedans, which should be reached by 2025.
Ark Invest also purchased 14,000 shares – valued at $509,600 – of Xpeng on Tuesday.
Xpeng stock closed up 3.7% at $36.4 per share on Tuesday. The title is down 27.6% since the start of the year.
See also: Tesla Rival Xpeng January Deliveries Surpass Rivals Nio, Li Auto: What You Need To Know
Xpeng, based in Guangzhou, China, reported better monthly delivery figures than its near rivals on Tuesday. Nio Inc. (NYSE:NIO) and Li Auto Inc (NASDAQ: LI).
This is a second purchase in Xpeng for Ark Invest this year, a title that it has been accumulating since the beginning of December.
Xpeng said it delivered 12,922 electric vehicles in January, a 19% drop from December and a 114% jump from January 2021.
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