diff --git a/controllers/helmchart_controller.go b/controllers/helmchart_controller.go
index 844cf63c8..0eaca70bb 100644
--- a/controllers/helmchart_controller.go
+++ b/controllers/helmchart_controller.go
@@ -23,6 +23,7 @@ import (
 	"net/url"
 	"os"
 	"path"
+	"path/filepath"
 	"strings"
 	"time"
 
@@ -383,7 +384,7 @@ func (r *HelmChartReconciler) reconcileFromGitRepository(ctx context.Context,
 
 	// package chart
 	pkg := action.NewPackage()
-	pkg.Destination = artifact.Path
+	pkg.Destination = filepath.Dir(artifact.Path)
 	_, err = pkg.Run(chartPath, nil)
 	if err != nil {
 		err = fmt.Errorf("chart package error: %w", err)
diff --git a/controllers/storage.go b/controllers/storage.go
index a0a51d299..56e4ea48a 100644
--- a/controllers/storage.go
+++ b/controllers/storage.go
@@ -120,12 +120,14 @@ func (s *Storage) RemoveAllButCurrent(artifact sourcev1.Artifact) error {
 	return nil
 }
 
-// ArtifactExist returns a boolean indicating whether the artifact file exists in storage
+// ArtifactExist returns a boolean indicating whether the artifact exists in storage and is a
+// regular file.
 func (s *Storage) ArtifactExist(artifact sourcev1.Artifact) bool {
-	if _, err := os.Stat(artifact.Path); os.IsNotExist(err) {
+	fi, err := os.Lstat(artifact.Path)
+	if err != nil {
 		return false
 	}
-	return true
+	return fi.Mode().IsRegular()
 }
 
 // Archive creates a tar.gz to the artifact path from the given dir excluding any VCS specific