Over the past few months, Tesla's stock price has rebounded significantly. This has led to the highest weight of this electric car manufacturer in the flagship ETF valued at $6.2 billion under "Wood Sister" Kathy Wood.
According to the Financial APP, in the past few months,$Tesla (TSLA.US)$Tesla's stock price has rebounded significantly. This has led to the highest weight of this electric car manufacturer in the flagship ETF valued at $6.2 billion under "Wood Sister" Kathy Wood.
approximately 15.4% of Tesla's weight. Prior to this, the company's stock price had rebounded more than 80% from the low point of 2024 in April. This was still the case after the fund reduced its holdings of Tesla's stocks in recent weeks.$ARK Innovation ETF (ARKK.US)$According to compiled data, Tesla currently accounts for about
a weight that reflects the most steadfast belief in the stock in the 10-year history of this disruptive technology fund. For a long time, Tesla has been one of Wood's most bullish stocks. In April of this year, Tesla reclaimed the top position of ARKK, replacing$Coinbase (COIN.US)$. The second largest holding of this ETF is$Roku Inc (ROKU.US)$ with a weight of about 9.1%.$Coinbase (COIN.US)$Ranked third, accounting for approximately 8.5%.
Todd Sohn, an ETF strategist at Strategas, said: "The rise in stock prices is undoubtedly a huge catalyst. Normally, they keep the weight limit at around 10%-11%, but now they let it continue to rise."
ARK Invest's Innovation ETF has not bought Tesla's stock in recent months, and according to daily updates sent to clients by the company, the fund has sold it several times in July. The ETF has fallen about 12% this year, while Tesla has risen about 5%.
By the end of Tuesday's close, the automaker's stock had risen for the tenth straight trading day, marking its longest streak of consecutive gains since June last year. The quarterly shipment volume announced earlier this month exceeded analysts' average expectations, pushing the upward trend.
The parent company of the fund, Ark Invest Management, did not immediately respond to requests for comment.
Wood has long been one of Tesla's loyal supporters, and she became famous for boldly predicting Tesla's stock price when the epidemic was at its worst. Retail investors accepted her views and pushed the company's assets to a peak of more than $60 billion in early 2021.
Since then, demand has begun to weaken. Currently, Ark Invest's six actively managed ETFs collectively hold about $11 billion in assets. This year, net outflows from these funds totaled $3.4 billion, with ARKK outflows of $2 billion leading the way.
Nevertheless, Wood remains confident in Tesla. In June, she updated her forecast for Tesla's stock price to reach $2,600 by 2029, or about $3,100 in a bull market scenario. Tesla's stock closed at $262.33 on Tuesday.
Of the 10 ETFs with Tesla accounting for 10% or more of the total portfolio, three are Wood's funds. These include the $1.5 billion$ARK Next Generation Internet ETF (ARKW.US)$and the $0.839 billion$ARK Autonomous Technology & Robotics ETF (ARKQ.US)$.
Other funds include the $1.5 billion$Fidelity Covington Trust Msci Consumer Discretionary (FDIS.US)$Index F($FDIS.US$) and the $730 million$First Trust Nasdaq Clean Edge Green Energy Index Fund (QCLN.US)$.
Editor/Emily