Cathie Wood-led Ark Investment Management on Monday further raised its exposure in Tesla Inc (NASDAQ:TSLA) and Xpeng Inc (NYSE:XPEV), doubling down efforts in buying shares of the two electric vehicle companies despite their stocks' sluggishness.
The popular money managing firm bought 42,124 shares — estimated to be worth $39.45 million based on the latest closing price— in Tesla.
This was Ark Invest’s second buy in the Elon Musk-led company’s stock this year after months of continuous profit booking when Tesla shares traded above $1,000. Ark Invest counts Tesla among its biggest bets.
See Also: Cathie Wood Buys $28M In Tesla Shares As Stock Crashes, Ending Months-Long Profit Booking Spree
Tesla stock closed 10.68% higher at $936.7 a share on Monday. The stock is down 21.9% so far this year.
Ark Invest bought shares in Tesla via the Ark Innovation ETF (NYSE:ARKK) and the Ark Next Generation Internet ETF (NYSE:ARKW) on Monday. The Ark Autonomous Technology & Robotics ETF (BATS:ARKQ) too owns shares in Tesla.
The three ETFs held 1.46 million shares — worth $1.25 billion — in Tesla, prior to Monday’s trade.
Tesla shares were under pressure despite it reporting an earnings beat last week. Shares plummeted after Musk told investors Tesla is not working on a $25,000 electric car yet and said it does not plan to produce new model vehicles in this year.
Musk said it is more important to develop the humanoid robot than new models and focus on autopilot, or the full self driving.
Tesla's shares climbed higher on Monday after Credit Suisse upgraded the stock from Neutral to Outperform and maintained a $1025 price target.
Wood, who is a Tesla bull, has set a $3,000 price target for the maker of Model 3 and Model S electric sedans, to be hit by 2025.
The money managing firm also piled up 55,178 shares — estimated to be worth $1.9 million — in the U.S. listed Chinese electric vehicle maker Xpeng.
See Also: Cathie Wood Makes First Buy In An EV Maker In 2022 — And It's Not Tesla
Xpeng stock jumped 9.14% on Monday, closing at $35 a share. The stock is down 30.2% year-to-date.
This is a second buy in Xpeng for Ark Invest this year, a stock that it has been piling up since early December.
Xpeng delivered 98,155 electric vehicles in 2021, significantly higher than popular rival Nio Inc’s (NYSE:NIO) 91,429 deliveries as well as Li Auto Inc’s (NASDAQ:LI) 90,491 units.
ARKQ held 629,269 shares— worth $20.23 million in Xpeng, prior to Tuesday’s trade. No other Ark Invest ETF owns shares in Xpeng.
