Cathie Wood’s Ark Invest decided to follow the trend of purchasing discounted stocks by buying a large amount of Tesla shares. On Monday, they executed a complex transaction, acquiring 122,752 Tesla (TSLA) shares, which were valued at around $18.05 million. These shares were distributed among three different Ark funds—ARKK, ARKQ, and ARKW.
Ark Invest Buys Tesla Shares (TSLA)
Ark’s recent large-scale acquisition of Tesla shares reflects their commitment to investing in the dominant player in the electric vehicle industry. Over the past week, Ark has been actively buying Tesla stock, signaling their confidence in the company’s promising future prospects.
Previously, Ark bought Tesla (TSLA) shares from Elon Musk at a discount due to disputes with OpenAI. The profits were later used to intensify Ark’s involvement in the company by acquiring more shares.)
Tesla (TSLA) Misses Analyst Estimates for Earnings
In Q1 2023, Tesla reported a sales decline of 9% compared to analyst predictions, marking its most significant dip since 2012 as per CNBC. This decrease is believed to be the result of ongoing price reductions that the automaker is grappling with. Consequently, revenue dropped from $25.17 billion in Q4 2023 to $23.33 billion a year prior, and net income plummeted from $2.51 billion or 73 cents per share in Q1 2022 to $1.13 billion or 34 cents per share.
In the initial quarter of 2024, Tesla experienced a more significant drop in automotive revenue compared to the previous year, with a decrease of 13% reaching a total of $17.38 billion. This decline was harsher than the one observed in 2020 when production interruptions due to COVID-19 took place.
In its presentation to shareholders, Tesla (TSLA) cautioned that the expansion in production volume could be significantly slower in 2024 compared to the growth experienced in the previous year.
Because of concerns over the company’s persistent price drops, sluggish shipments, and intense competition in China, Tesla’s stock has decreased by over 40% in 2023. According to Tesla’s announcement earlier this month, first-quarter vehicle deliveries dropped by 8.5% compared to the same time frame last year.
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2024-04-24 01:14