Tesla, Inc. TSLA shares pulled back by over 8% this week amid demand and margin worries. Undeterred by the sell-off continuing into the new year, Cathie Wood’s Ark Invest continued to bulk up on the stock.
What Happened: Ark Invest’s flagship Ark Innovation ETF ARKK and Ark Autonomous Technology & Robotics ETF ARKQ added 24,506 and 33,538 shares, respectively of Tesla shares on Friday. Ark’s cumulative purchase of Tesla totaled 58,044 shares, valued at $6.56 million.
The Wood-run firm bought Tesla shares in three of the four sessions of the truncated week. Ark’s Tesla purchases this week totaled 255,206 shares worth $27.99 million.
- On Wednesday, ARKK and ARKQ together added 21,050 shares, valued at $2.39 million.
- On Tuesday, both exchange-traded funds bought a cumulative 176,112 shares of Tesla, valued at $19.04 billion.
The fund has been on a Tesla buying spree in recent weeks amid the stock plunge. In the week ended Dec. 30, it picked up $28.82 million worth of shares and in the week ended Dec. 23, it added $10.6 million worth of shares.
Tesla’s shares plunged to a fresh low at the start of the new year, pressured by fourth-quarter deliveries missing expectations. On Friday, the company announced price cuts ranging from 5.7%-13.5% in China, which reignited concerns regarding a demand slowdown in its key market.
See also: Everything You Need To Know About Tesla Stock
Ark’s Other Trades: Among Ark’s other notable trades on Friday included the sale of 31,758 shares of Nvidia Corp. NVDA, worth $4.72 million.
The firm’s ARKQ also sold 169,472 shares of Chinese electric vehicle startup XPeng, Inc. XPEV, valued at $1.71 million. XPeng’s fundamentals have suffered recently amid the COVID-19 resurgence in China. It has underperformed its domestic peers Nio, Inc. NIO and Li Auto, Inc. LI, both fundamentally and in terms of stock performance.
Tesla’s China price cuts announced on Friday are expected to have a bigger impact on XPeng, as the former’s reduced prices will likely take away market share from the latter. A majority of XPeng’s sales come from the low-end price point, at which it will now have competition from Tesla.
ARKK closed Friday’s session up 1.13% to $31.37, according to Benzinga Pro data. Tesla recouped early losses and ended the session 2.47% higher at $113.06.
Read next: Tesla’s China Price Cuts Spark Stock Plunge Over Margin Worries — But Analysts Say It’s Actually A ‘Smart Move’
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