Cathie Wood increases exposure to Tesla Chinese rival, backed by Warren Buffett


Cathie Wood-led Ark Investment Management sharply increased its exposure to Chinese automaker BYD Co BYDDY on Monday but stayed away from buying shares in its favorite electric car stock Tesla Inc TSLA and fellow Xpeng Inc XPEV on the dip.

The popular stock-picking company bought 53,228 shares — worth an estimated $2.3 million based on Monday’s closing price — in the automaker headquartered in Shenzhen, China, which is rapidly transitioning to making new energy vehicles.

OTC shares of BYD, backed by Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B), Chairman Buffett, closed 8.75% lower Monday at $43.3 per share. The stock has fallen 38% so far.

See also: Warren Buffett-backed Chinese automaker sold more than double EVs than Nio, Xpeng and Li combined in February

Shares of Tesla and Xpeng closed 3.6% lower and 13.8% lower, respectively, on Monday. This was Ark Invest’s first purchase in BYD so far this year.

St. Petersburg, Florida-based Ark Invest held 266,986 shares — valued at $12.7 million — in BYD through the ARK Autonomous Technology & Robotics ETF ARKQ ahead of Monday’s trading. No other ARK ETF owns stock in BYD.

The latest purchase represents a 16.6% increase in Ark Invest’s stake in BYD.

See also: Cathie Wood’s Ark is in the dip in favorite stocks on Thursday

Buffett owned an approximately 8% stake in the automaker that competes with Tesla and Chinese homegrown electric vehicle startups such as Nio Inc NIO, Xpeng and Li Auto Inc LI.

In February, BYD sold more than double electric vehicles than the combined delivery volumes of Nio, Xpeng and Li Auto.

Photo: Courtesy of BYD

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