Cathie Wood's Ark Invest buys the dip on Tesla stock

Yahoo Finance's Alexandra Semenova joins the Live show to discuss Cathie Wood's Ark Invest buying the dip on Tesla stock.

Video Transcript

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JULIE HYMAN: Let's continue the conversation, though, by focusing on another aspect of Tesla's turmoil. Renewed interest in the automaker by everyone from retail investors to Cathie Wood. Some of them seeing this as a good time to buy.

Other side of the trade, right? If he's selling, somebody buying. Yahoo Finance's Alexandra Semenova has been looking at that side of the story.

ALEXANDRA SEMENOVA: Well, exactly, Julie. It has been a rough month for Tesla. But you know who is not a shaken by what's been going on? None other than ARK Invest Cathie Wood, who continues to stand in Elon Musk's corner, despite all that is going on with Twitter and Tesla.

We know that she's been a long-time Tesla bull and hasn't been fazed at all since his acquisition of Twitter. Yesterday was the perfect example of her continued conviction in Tesla.

According to a transaction report that hit my inbox after the close, she snapped up nearly 75,000 shares valued at around $11.7 million, based on yesterday's closing price. A hefty amount of that, of course, went to her flagship [? RK ?] Fund.

And it did come just before we learned about Musk's offloading of Tesla shares that rattled investors. But I don't imagine that things would be any different for Wood had that report come out before her purchases. We've seen Elon Musk selloff Tesla before, and that hasn't really fazed her long-term outlook for Tesla.

Julie, you spoke to her last week. She said that she continues to believe in Musk, in the future. And as she said before, he is ARK's Renaissance man.

BRIAN SOZZI: Well, there's other believers here, too, Alexandra. And that is the retail investor that might be looking at this decline in Tesla shares as a "once in a lifetime" opportunity.

ALEXANDRA SEMENOVA: Exactly. Individual investors are also buying up Tesla stock. That's been their favorite for a while. In fact, retail inflows have actually been lower this month compared to the monthly average.

But they haven't changed their interest in Tesla at all. Net retail purchases of Tesla reached $610 million across the five trading sessions, ended Tuesday. That's according to the latest available data, probably even higher today.

And despite a slowdown in allocations, retail investors continue to focus on their same favorite trades. That is Tesla, technology stocks, energy stocks, and occasionally buying the dip. They bought the dip across airline stocks earlier this week.

And an interesting point to make here, too, is that even as institutional interest in Tesla, you know, falls out of favor, as they risk and rotate out of Tesla. The retail purchases of Tesla have actually helped offset some of those losses. So it would be even lower if it weren't for those individual investors who believe in Elon Musk.

BRIAN SOZZI: Right. And of course, you can catch Alex's whole story on the Yahoo Finance homepage now. Alexandra Semenova, thanks so much. Appreciate it.