---
title: "Cathie Wood Thanks Musk for Twitter Deal Despite Tesla Stock Hit"
description: "Cathie Wood, a long-time champion of Elon Musk’s Tesla Inc., thanked him for his purchase of Twitter Inc. -- a move he said would unleash the site’s “tremendous potential.”"
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2022-04-26-cathie-wood-thanks-musk-for-twitter-deal-despite-tesla-stock-hit/"
published: "2022-04-26T17:48:51"
lang: "en-ZA"
word_count: 301
---

# Cathie Wood Thanks Musk for Twitter Deal Despite Tesla Stock Hit

> Cathie Wood, a long-time champion of Elon Musk’s Tesla Inc., thanked him for his purchase of Twitter Inc. -- a move he said would unleash the site’s “tremendous potential.”

By Bloomberg · Published 26 April 2022, 19:48 SAST

## Content

But the takeover has been less supportive of Wood’s own tech-industry bets.

Shares of Tesla have dropped by 10% over the past two days as Musk plans to use stock in the electric-car maker as collateral for a loan financing the takeover. Tesla was the biggest holding in Wood’s Ark Innovation (ARKK) and Ark Next Generation Internet (ARKW) ETFs at the end of last week, making up 10.1% and 9.6% of their assets, respectively, according to data compiled by Bloomberg.

Wood also missed out on some of the gains from the Twitter acquisition after cutting ARKW’s stake in the social-media company from 5.3% of the fund at the end of last year to 1.7% by April 1, the last business day before Musk disclosed that he’d become Twitter’s [biggest shareholder](https://www.bloomberg.com/news/articles/2022-04-04/musk-takes-9-2-stake-in-twitter-after-questioning-platform). ARKK had completely eliminated its Twitter holdings by mid-February.

When asked if Ark will now buy Twitter, a spokesperson said the company doesn’t comment on daily trades.

The firm’s innovation-themed funds have already been under pressure from rising interest rates, which have weighed on the valuations of growth stocks particularly hard. ARKK has fallen 45% this year, while ARKW has dropped 42%.

Wood had expressed concerns about Twitter earlier this year that are in in line with some of Musk’s, [saying](https://www.bloomberg.com/news/articles/2022-02-17/cathie-wood-says-risk-off-mood-undervalues-tech-stocks-ark-owns) her firm’s confidence in the company “was nicked a bit as we saw some of the censorship issues and controversies.” She’s also [said](https://www.bloomberg.com/news/articles/2022-04-12/cathie-wood-says-twitter-s-advertising-model-may-not-be-right) the platform’s advertising model may not be right.

In a statement announcing the deal Monday, Musk said “free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated.”

Wood retweeted the statement on the deal, saying simply: “Thank you.”

> Thank you, [@elonmusk](https://twitter.com/elonmusk?ref_src=twsrc%5Etfw). [https://t.co/ma66BVPEwN](https://t.co/ma66BVPEwN)
>
> — Cathie Wood (@CathieDWood) [April 26, 2022](https://twitter.com/CathieDWood/status/1518764326303277057?ref_src=twsrc%5Etfw)