Arch Invest’s Kathy Wood is adding shares of Tesla to its various funds after the electric vehicle maker fell 40% from a record high. The closely-followed innovation investor bought at least 50,000 shares of Tesla over the past two weeks for its flagship Arc Innovation ETF, the Arc Autonomous Technology and Robotics ETF and the Arc Next Generation Internet ETF. Notable daily moves included the purchase of 22,209 shares of the Elon Musk-led company for ARKK on May 24 and another 15,858 shares of the same security on May 23. Before the recent buying spree, Wood was slashing his Tesla stake, despite being a longtime bull. Last year, Tesla Ark’s flagship fund Innovation ARKK was the largest holding, accounting for more than 10% of the ETF. Now the car company owns about 8.3% of ARKK. Wood said Tesla’s stake cut last year was a technical move. She previously explained that she was reducing her biggest winning holdings to raise cash to buy the next big winner in the innovation sector. The Arc has been wildly bullish on Tesla for several years now, with the EV maker’s shares forecast to reach $4,600 in 2026. Wood most likely has $3,000 for the stock, with a best-case price of around $4,000. Ark’s analyst previously told CNBC that the asset manager believes a potential robotaxi business for Tesla could contribute more than 50% of the company’s expected value in 2026. Tesla has sold more than 40% from its all-time high of $1,243.49 that came back. november. ARKK has felt the pain of Tesla’s decline, down more than 50% in 2022.
