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Cathie Wood Loads Up Tesla Amid Growing Criticism of Elon Musk

Cathie Wood Loads Up Tesla Amid Growing Criticism of Elon Musk

According to Bloomberg, Tesla Inc.’s fourth quarter Kathy Wood even raised concerns over CEO Elon Musk’s ability to manage the business, potentially reflecting his faith in the billionaire and electric vehicles.

Exchange-traded funds backed by Arc Investment Management LLC bought more than 445,000 shares of the electric vehicle maker since Oct. 3, when they launched their latest purchases, according to Arc trading data compiled by Bloomberg. This is the first quarter in seven that Arc has bought Tesla shares on a net basis.

Arc’s purchases so far last quarter are worth about $88 million, based on Tesla’s average trading price from October 3 to December 20. Yet Tesla’s weighting among the firm’s flagship funds has moved from pole position to third. It was set for its worst annual return before October as its share price plunged 61% this year.

Elon Musk has been in the news for growing criticism over his involvement in Twitter Inc as well as growing concerns from investors who have been vocal about the need for governance changes at the electric automaker. Longtime investor Ross Gerber, CEO of Gerber Kawasaki Wealth Management, recently tweeted about an alleged lack of leadership at Tesla and said it was “time for a shakeup.”

Wood’s flagship Arch Innovations ETF is down 66% for the year, compared to a 32% decline in the Nasdaq 100 index, as historic tightening by the Federal Reserve and fears of a global recession hit growth stocks.

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