ARK Invest leverages Tesla's 24% year-to-date decline to bet on software margins

Tesla now comprises 8.49% of the devenue ARK Innovation ETF (ARKK), following a purchase of approximately $27.8 million in Tesla shares between April 6 and April 8. ARK acquired nearly 81,000 shares during a period where Tesla stock declined 13.9% this month and between 21.6% and 24% year-to-date. On Wednesday, the fund purchased $11.4 million in shares at a closing price of $343.25, including roughly 33,200 shares through its autonomous technology exchange-traded fund. The buying streak is based on the expectation that Tesla will evolve into a software and autonomous ride service platform, which would shift the business toward profit margins typical of technology firms. Tesla is expanding chip production through the Terafab manufacturing facility in Texas, with Intel as a participant.