On Tuesday, Cathie Wood-led Ark Invest made a significant move by purchasing shares of BYD Co Ltd (OTC:BYDDY). This decision comes shortly after the Chinese electric vehicle manufacturer announced a recall of over 115,000 vehicles due to battery-related safety issues.
The BYD Trade
The Trade was executed through Ark’s ARK Autonomous Technology & Robotics ETF (BATS:ARKQ). The fund acquired 55,523 shares of BYD Co Ltd, valued at approximately $737,900 based on the latest closing price of $13.29. This purchase increases Ark’s exposure to the electric vehicle sector, despite recent challenges faced by BYD.
BYD recently faced a setback when it issued a recall for more than 115,000 vehicles, including the Tang and Yuan Pro series, due to potential battery safety risks. The recall was prompted by design defects that could lead to circuit board corrosion, posing safety hazards.
Despite these issues, Ark Invest’s decision to buy more shares indicates a likely continued belief in BYD’s long-term potential in the EV market.
It should be noted that on Monday, Ark had purchased 69,000 BYD shares worth $941,850 through ARKQ. Wood is considered bullish on BYD-rival Tesla Inc. (NASDAQ:TSLA). She has called Tesla CEO Elon Musk “the most productive human being on Earth and in space in history.” Tesla is Ark Invest's largest holding, with its stake valued at nearly $1.5 billion. Across Wood's family of ETFs, Tesla accounts for a combined portfolio weight of about 9.94%. The Musk-led company is scheduled to release third-quarter results on Wednesday after the market close.
Benzinga's Edge Stock Rankings show that BYD’s principal rival, Tesla, has a Value in the 3rd percentile. Here is how other major EV players stack up.
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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal
