What happened
Shares of electric car superstar Tesla (TSLA 2.26%), which sold off slightly on Monday's news of a Securities and Exchange Commission (SEC) investigation into the carmaker, are perking right back up on Tuesday, rising 2.1% through 2:05 p.m. ET.
You can probably thank Cathie Wood for that.
Image source: Getty Images.
So what
Late last month, buying by Wood's Ark Invest helped to light a fire under Tesla stock. Well, as Ark's website reflects, Ark's purchases of Tesla stock continued apace through the end of January, but then slowed down abruptly toward the end of last week.
Last night, however, Ark made its biggest purchase of Tesla stock since last Monday -- nearly 24,000 shares worth in the neighborhood of $21 million or $22 million -- snapping up Tesla shares that had been put on sale by the SEC news.
Now what
Evidently, Wood isn't too worried by the SEC investigating Tesla and the social media posts of its CEO, Elon Musk. According to the company's 10-K filing, which contained the note that sparked yesterday's sell-off, the SEC is interested in learning more about Tesla's "governance processes around compliance with the SEC settlement" Tesla entered into to monitor and approve Musk's Twitter postings.
Truth be told, though, there wasn't a whole lot of new information about this investigation contained in the 10-K, and nothing that really rings alarm bells for me. While I cannot say I'm enthusiastic about Tesla stock at nearly 300 times earnings, for fans of the electric car stock -- of which Cathie Wood is clearly one -- yesterday's sell-off probably looked like a good buying opportunity.
So far today, it's turning out to have been exactly that.
