Cathie Wood Takes $147 Million From Tesla Stake And Takes Position In This Rival EV Maker


Cathie Wood-led Ark Investment Management Friday bought shares in US-listed Chinese electric vehicle Nio Inc NIO, a first for the popular investment company that has built significant stakes in global EV leader Tesla Inc TSLA and piled up shares in local EVs. rivals Xpeng Inc XPEV and BYD Co BYDDY.

Ark Invest surfaced 420,057 shares – valued at $8.36 million based on Friday’s close – in Nio during the dip.

Nio shares closed 9.4% lower on Friday at $19.9 per share. The stock has fallen 40.5% so far.

Shanghai, China-based Nio’s founder and CEO William Li told investors on Friday that the EV maker aims to break even for the full year by 2024 and will more than double its research and development spending this year. of new products.

Nio reported a loss of 16 cents per share on an adjusted basis for the three months ended December 31 on revenue of $1.5 billion.

According to Benzinga Pro, the analyst consensus was a loss of 21 cents a share on revenue of $1.53 billion.

Nio said it would deliver 25,000 to 26,000 vehicles in the first quarter. The electric car maker delivered 9,652 vehicles in January and 6,131 vehicles in February, while sales were lower over the Chinese New Year and production was halted for factory upgrades.

See also: Nio’s William Li says EV maker is on track to break even in 2024 amid soaring chips and commodities prices

The St. Petersburg, Florida-based investment company also made some gains in the shares of the Elon Musk-led company. Ark Invest sold 145,977 shares — an estimated $147.5 million — in Tesla.

Tesla shares rose this week to once again surpass the $1 trillion market cap after the company opened its Giga Berlin site for business.

Wood, a Tesla bull, has previously said she estimates Tesla stock will hit $3,000 by 2025.

Tesla stock closed 0.3% lower on Friday at $1,010.6 per share.

Ark Invest owned 1.71 million shares — valued at $1.73 billion — in Tesla ahead of Friday’s trading.

See also: Cathie Wood buys an EV maker for the first time in 2022 – and it’s not Tesla

Wood’s company also reached 80,000 shares — worth an estimated $4.36 million — in BYD, headquartered in Shenzhen, China, a company backed by Warren Buffett, chairman of Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE : BRK-B).

BYD, which started as a battery company, has rapidly expanded its EV offering. In February, BYD sold more than double the number of electric vehicles than Nio, Xpeng and Li Auto combined.

Ark Invest held 331,334 shares and 928,648 shares in BYD and Xpeng prior to Friday’s trading, with an estimated value of $19 million and $27.2 million, respectively.

Photo: Courtesy of Nio

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