AI-Based ETF Buys Tesla’s (TSLA) Dip

According to Marketwatch observations, The Qraft AI-Enhanced US Large Cap Momentum ETF (NYSE: AMOM), an exchange-traded fund optimized and actively managed by artificial intelligence (AI), bought about $1.4 million worth of Tesla (NASDAQ: TSLA) shares earlier this month.

The new position is important given the fund’s history of accurately predicting Tesla price movements. In fact, AMOM sold all of its Tesla stock when the name was trading near its all-time high of $900.40 and didn’t long it until now.

The Seoul, South Korea-based ETF now has Tesla as its third-largest investment, behind social-media platform Facebook Inc. (NASDAQ:FB) and retailer (NASDAQ:AMZN).

AMOM had a strong year in 2020, printing a return of 55%. This year the ETF has returned 3.7%, while its benchmark, the S&P 500 Momentum ETF, has returned 35% year-over-year.

In other Tesla news, CEO Elon Musk has clarified that his electric car company has not sold any of its bitcoin holdings. On Sunday, he responded to Twitter user CryptoWhale, who wrote: “Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their #Bitcoin holdings. With the amount of hate @elonmusk is getting, I wouldn’t blame him.”

Musk’s response was simply, “Indeed.

The exchange came just days after Musk said Tesla would no longer accept bitcoin as payment for its cars, citing environmental concerns associated with the crypto’s mining process.

Price Action

Tesla shares were trading down by 22 points, or 3.76%, at $567.55 at the time of publication Monday. TSLA is down more than 30% since the beginning of February, when AMOM’s AI decided to sell up.

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