Tesla Back As Ark's Darling: EV Giant Reclaims Top Spot In Cathie Wood's Flagship Fund After Over 2 Years
Portfolio Pulse from Shanthi Rexaline
Tesla Inc. (TSLA) has regained its position as the top holding in Cathie Wood's Ark Innovation ETF (ARKK), surpassing Coinbase Global (COIN) due to a surge in Tesla's shares and Ark's ongoing sell-off of Coinbase shares. Tesla's holdings in ARKK are valued at $714.36 million, with both Tesla and Coinbase having a 9.75% weighting in the ETF. Ark remains bullish on Tesla, holding a $2,000 price target for the stock. Despite selling Tesla shares during 2023's price cuts, Ark bought over $22 million worth of Tesla stock on a recent dip. Tesla is also present in other Ark ETFs, and Ark has been selling Coinbase shares since July 2023.
April 09, 2024 | 12:19 pm
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NEGATIVE IMPACT
Coinbase Global has been overtaken by Tesla as the top holding in ARKK, amid Ark's ongoing sell-off of Coinbase shares.
Coinbase's displacement by Tesla as ARKK's top holding, coupled with Ark's continued sell-off, could negatively impact COIN's short-term stock performance.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 85
NEUTRAL IMPACT
ARKK experienced a slight premarket dip but remains significant due to its holdings in Tesla and ongoing adjustments, including selling Coinbase shares.
While ARKK's slight premarket dip indicates a neutral short-term impact, its strategic holdings in Tesla and adjustments like selling Coinbase shares keep it relevant.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 75
POSITIVE IMPACT
Tesla's stock surged, making it the top holding in ARKK, with Ark maintaining a bullish $2,000 price target and buying on recent dips.
Tesla's resurgence as the top holding in ARKK, combined with Ark's continued investment and bullish stance, suggests a positive short-term outlook for TSLA shares.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90