Revival of Tesla: A Triumph in the Ark
Return to the Throne: Tesla Inc. TSLA shares surged on Monday, reclaiming the top spot in Cathie Wood’s flagship Ark Innovation ETF ARKK. This achievement came as Ark continued its sell-off of Coinbase Global COIN shares, previously at the helm.
Tesla’s Ascendancy: By Tuesday, ARKK held $714.36 million worth of Tesla shares, as per the firm’s website. Remarkably, no Tesla shares were traded on the day of the surge. Meanwhile, Coinbase, now second, held a value of $714.63 million for the fund.
Weighting Dynamics: Notably, both Tesla and Coinbase carried a 9.75% weight in ARKK. However, Tesla’s higher share count of 4,129,696 versus Coinbase’s 2,780,772 explains its current supremacy.
See Also:Best ETFs To Buy Right Now
Significance of the Shift: Ark’s optimism towards Tesla remains unwavering, with a $2,000 price target standing on the premise of Tesla’s robotaxi prospects. The firm backed the stock even when Elon Musk divested Tesla shares for Twitter acquisition.
Ark’s Strategy with Tesla: During Tesla’s resurgence in the first half of 2023, following price cuts, Ark capitalized on profits. Despite a decline in the stock price in the latter half due to unsuccessful sales increments, Ark persisted with its selling. However, in 2024’s turmoil, Ark bolstered Tesla on days of notable weakness, exemplified by Friday’s $22 million purchase amidst rumors of discontinuing low-end EVs.
Presence in Other Ark ETFs: Tesla retains a position in Ark’s other ETFs, with their Q4 holdings totaling 3,802,519 shares valued at $944.85 million as per the firm’s 13F filing with the SEC in January.
Changing Fortunes: Tesla yielded the top spot in ARKK to Coinbase in January 2022, as mentioned by Seeking Alpha. Ark initiated the divestment from Coinbase in July 2023, furthering the trend with the introduction of the ARK 21Shares Bitcoin ETF ARKB.
Premarket Reflections: In premarket activities on Tuesday, ARKK experienced a marginal 0.08% dip to $48.06, based on Benzinga Pro data.
Read Next: Cathie Wood’s Ark Sheds Nearly $4M Nvidia Shares And Trims Position In This AI Peer
Images via Shutterstock