Cathie Wood scoops up Tesla as stock tumbles on deliveries miss in Q3

Cathie Wood bought Tesla Inc. shares as they plunged the most in four months after the electric carmaker’s third-quarter deliveries missed expectations.
 

Funds backed by Wood’s Ark Investment Management LLC bought 132,213 shares in Elon Musk’s company on Monday, marking the firm’s first purchase of Tesla since mid-June, according to data compiled by Bloomberg. 

Tesla fell 8.6% on Monday, the most since June 3, as shipment issues and chip shortages weighed on deliveries. It was also the worst performer in the S&P 500 Index, which notched its best day since July 27. The stock rose 3% in premarket trading on Tuesday but it’s still down 31% this year, underperforming the US benchmark.

This is Wood’s second purchase in Tesla in 2022 after a year of selling down her stake. The first was in June, days after Tesla lost its crown jewel status in her main fund, a position it had held for about four-and-a-half years.

The latest purchases add to evidence that Cathie Wood is on a dip-buying binge again.

Ark had sold Tesla shares for at least five quarters in a row as of end-June, Bloomberg data show.  

The purchases on Monday were made by the flagship Ark Innovation ETF and Ark Next Generation Internet ETF.

Ark’s main ETF has plunged 60% in 2022 as historical tightening by the Federal Reserve and global recession fears batter growth stock