Cathie Wood Ramped Up Purchases Of Tesla Shares Amid Growing Criticism Of Elon Musk

Cathie Wood increased her purchases of Tesla shares during the fourth quarter, despite concerns about Chief Executive Officer Elon Musk’s management skills. This could signify that she believes in billionaires and electric cars.

Ark Investment Management LLC had bought just over 445,000 shares of Tesla from exchange-traded funds since Oct. 3, when the firm began its latest buying spree, according to Bloomberg Ark trading data.

Ark has net purchased Tesla shares for the first time in seven quarters. Based on Tesla’s average trading prices from Oct. 3 through Dec. 20, Ark’s quarter-to-date purchases came to $88 million.

However, Tesla’s position in Ark’s flagship fund is now third, down from its pole position before October, due to a 61% drop in its share price, poised to deliver its worst annual return since 2008.

Musk’s involvement in Twitter Inc. has come under increasing scrutiny. Investors have also raised concerns about Musk’s governance.

Ross Gerber, a long-time investor and CEO of Gerber Kawasaki Wealth Management tweeted recently about Tesla’s perceived lack of leadership. He said that it was “time for a shakeup.”

Wood’s Ark Innovation ETF, Wood’s flagship ETF, is down 66% compared to 32% in the Nasdaq 100 Index.

This is because historical tightening by the Federal Reserve and global fears of a recession continues to hurt growth stocks.

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