Cathie Wood Pours $28 Million in Tesla Stock After Brutal Sell-Off

This article first appeared on GuruFocus.

Cathie Wood’s ARK Invest added more Tesla (NASDAQ:TSLA) shares to its portfolio as the fund manager continued to accumulate the electric vehicle maker’s stock during a period of price weakness.

Tesla stock was the target of a nearly $11.4 million purchase executed through the firm’s autonomous technology exchange-traded fund.

The acquisition of roughly 33,200 shares of Tesla stock followed two prior days of buying that totaled about $16.4 million. Tesla stock purchases for the full week have now reached approximately $27.8 million. Tesla stock has faced a decline of close to 24% since January amid questions about delivery volumes and the company’s broader strategic direction.

Wood’s approach to Tesla stock hinges on expectations that the automaker will evolve into a platform driven by software and autonomous ride services. Tesla stock could see its valuation supported if the business shifts toward profit margins more typical of technology firms. Tesla stock is also tied to the company’s expanding role in chip production through the Terafab manufacturing facility in Texas.

That project now lists Intel as a participant alongside Tesla and other affiliates working to streamline semiconductor output. Tesla stock remains a key piece of ARK’s concentrated bet on disruptive innovation. Tesla stock continues to draw attention even as market sentiment stays tempered.