ARK Buys Tesla Dip, Adds to Circle Internet Stake Amid Shifting Investment Strategy
ARK Invest, managed by Cathie Wood, made significant trades on Thursday, July 23. The fund purchased 160,151 Tesla shares across four ETFs for approximately $59.9 million after the electric vehicle maker's stock dropped nearly 15% following a weak earnings report. This buy-the-dip strategy has been consistent with ARK's approach to investing in Tesla.
Tesla reported a second-quarter operating profit of around $400 million, which fell short of Wall Street estimates by $1.3 billion. Despite this, the fund remains bullish on the company's prospects. The purchase price of Tesla shares was valued at over 150 times forward earnings, significantly higher than the Magnificent Seven, a group of high-growth stocks.
In addition to buying Tesla, ARK also acquired 130,136 shares of Circle Internet Group for around $8.6 million. This investment in digital finance and blockchain aligns with ARK's increasing exposure to these sectors. On the other hand, the fund sold a large portion of its Figma shares, reducing its position in the company by 976,368 shares across two ETFs for approximately $20.96 million.