Cathy Wood buys $41.7M worth of Tesla shares amid selloff – Shopify (NYSE: SHOP), ARK Next Generation Internet ETF (ARCA: ARKW), Tesla (NASDAQ: TSLA), ARK Innovation ETF (ARCA: ARKK)

Cathy Wood-led ark investment management bought major share in Tesla Inc TSLA Shares of the EV-maker plunged more than 9% on Thursday after the CEO Elon MuskComment on price cut.

What happened: The ARK-run fund bought over 256,000 shares of the EV-maker at an estimated valuation of over $41.7 million based on Thursday’s closing price. The purchase was made through Flagship ARK Innovations ETF ARKK And this ARK Next Generation Internet ETF ARKW,

Read also: Everything You Need to Know About Tesla Stock

According to data available on the firm’s website at the time of writing, Tesla tops ARKK with a weight of 9.38%.

Tesla shares closed 9.75% lower on Wednesday after Musk indicated the EV maker would continue cutting prices despite taking a hit to margins. Tesla’s operating margin fell 779 basis points to 11.4% during the first quarter compared to the same period a year ago.

However, Musk defended the drastic drop in the EV-maker’s margins, saying that higher volumes and a larger fleet is the right choice against lower volumes and higher margins.

“We expect that over time our vehicles will be able to generate significant benefits through autonomy. So we believe we want to lay the groundwork here, and then ship a large number of cars at a lower margin to get better , and later, Musk said during the earnings call, “We cut that margin in the future as full autonomy. This is a very important point.”

The EV-maker reported revenue of $23.33 billion in the first quarter, up 24% year-over-year.

Major Sales: ARK sold over 739,000 shares of the e-commerce company Shopify Inc Shop on Thursday at an estimated valuation of more than $35 million based on Thursday’s closing price. The company’s shares have gained more than 34% since the beginning of the year.

Read further: Congressman Sells SVB Financial Group Shares a Day Before FDIC Takeover

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