Cathie Wood’s ARKK starts 2023 off in the red as key holding TSLA plunges more than 10%
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Cathie Woodâs flagship Ark Innovation ETF (NYSEARCA:ARKK) closed out its first trading day of 2023 to the downside, as the exchange traded fund concluded lower by 2.5%. The innovation-focused investment vehicle was dragged down by its heavy allocation towards Elon Muskâs Tesla (TSLA), which plunged during the session amid disappointing delivery data.
Woodâs ARKK has a 7.00% weighting towards the electric vehicle maker, making the stock the ETF's third-largest holding. On Tuesday, TSLA rounded out the session at $108.10 a share, which equated to a 12.2% decline. Moreover, at one point, the stock dropped to as low as $104.65.
As TSLA retreated, so did ARKK. But ARKK is not the only one of Woodâs actively managed funds that owns shares of TSLA. Both the ARK Next Generation Internet ETF (NYSEARCA:ARKW) and ARK Autonomous Technology & Robotics ETF (BATS:ARKQ) ended in negative territory.
ARKW, which lists TSLA as its fifth most prominent portfolio position at 5.62%, traded lower by 2.1%. At the same time, ARKQ, which has the EV maker classified as the third most significant holding at 7.58%, slid by 1.2%.
2022 price action: TSLA -67.8%, ARKK -67.5%, ARKW -68.1%, and ARKQ -47.5%.
Despite TSLAâs recent decline, Wood and her team continue to load up on shares of the plunging electric vehicle maker. Recently, the innovation focused ETF issuer purchased 25K shares of Tesla.