A few of the ARK exchange-traded funds run by ETF star Cathie Wood made huge purchases on Friday. Accordingly these funds bought over 108,000 shares of Tesla, Inc. (NASDAQ: TSLA) shares on Friday, as the price of these ETFs lost over 5% on Friday. Note that these ETFs are still up well over 100% in the last year.
ARK Innovation ETF (NYSEARCA: ARKK) bought 19,272 shares of Tesla, while ARK Next Generation Internet ETF (NYSEARCA: ARKW) bought 71,481 shares. Separately, ARK Autonomous Technology & Robotics ETF (NYSEARCA: ARKQ) bought 17,440 shares. At Friday’s closing price this would have valued this purchase at roughly $68 million. Even though this is a small fraction of the total holdings, every little bit counts. ARKK is up 122% in the last year, ARKQ is up 115%, and ARKW Is up 132%.
24/7 Wall St. recently reported on Tesla:
Tesla Inc. (NASDAQ: TSLA) saw its short interest pull back into the most recent settlement date, although the stock has been correcting recently. Note that the number of shares short was still roughly triple that a year ago.
Short sellers reduced their positions in the two-week period ending on February 12 to 47.69 million. In the previous period, 52.38 million shares were short.
A year ago, just 18.39 million Tesla shares were sold short. One contributing factor to the rise over the past year has been that Tesla has issued millions of shares in secondary offerings and even conducted a stock split. Furthermore, the stock has risen about 451% over the past 52 weeks.
Tesla stock currently has an average daily volume of 19.51 million shares, so it would take short sellers more than two days to cover their positions.
Catherine Wood, the CEO and CIO of ARK Investment Management LLC is a minority and non-voting shareholder of 24/7 Wall St., LLC, owner of 247wallst.com