Why Cathie Wood's ARK is Selling Tesla Again?
1min read Recently, Cathie Wood's ARK Investment has made a series of significant transactions, among which the most eye-catching deal remains Tesla.
Data shows that ARK Innovation ETF (ARKK) and Ark Next Generation Internet ETF (ARKW), two funds under ARK Investment, sold a total of 62,151 shares of Tesla stock. Based on Tesla's closing price of $257.55 on Wednesday, the value of this transaction is approximately $16 million.
ARK Investment estimates that the market size of the autonomous taxi could reach $11 trillion, and Tesla will soon enter this market, using low operating costs to reduce service prices. Tesla plans to launch this service in Texas and California next year, initially with safety drivers, to achieve full autonomy before regulatory approval.
Even so, ARK Investment has been frantically selling Tesla stocks recently. This is mainly because Tesla recently announced better-than-expected third-quarter financial reports, causing the company's stock price to soar.
On October 24th, stimulated by the unexpected profit in the third quarter, Tesla's stock price soared by 21.9% that day. ARK Investment sold 85,456 shares of Tesla stock through its ARK Innovation ETF (ARKK) fund and ARK Autonomous Technology & Robotics ETF (ARKQ) fund, valued at about $22.22 million.
On October 28th, ARK Innovation ETF (ARKK) and Ark Next Generation Internet (ARKW) ETF sold another 120,141 shares of Tesla stock, valued at about $31.54 million.
On October 29th, ARK Innovation ETF (ARKK) and Ark Next Generation Internet (ARKW) sold 13,896 shares of Tesla stock. According to Tesla's closing price of $259.52 on Tuesday, the value of this transaction is about $3.6 million.
Despite this, Tesla remains the largest holding in the portfolios of ARK Investment's ARK Innovation ETF (ARKK) and Ark Next Generation Internet ETF (ARKW) funds.
Despite Tesla's good financial performance, analysts remain cautious. Among analysts tracking Tesla, 11 gave a buy rating, 16 gave a hold rating, and 8 gave a sell rating.
Yesterday, Tesla's stock closed at $257.55 per share, down 0.76%. Currently, Tesla's average target stock price is $207.83, which means there is still about a 20% downside. So far this year, Tesla's stock price has risen by 3.65%.
While selling Tesla stocks, Wood also bought AMD stocks on Wednesday. Documents show that ARK Investment bought 111,080 shares of AMD stock through its ARK Innovation ETF (ARKK), Ark Next Generation Internet (ARKW), ARK Autonomous Technology & Robotics ETF (ARKQ), and ARK Space Exploration & Innovation ETF (ARKX).
On Tuesday, AMD just released better-than-expected third-quarter financial reports. Revenue was $6.819 billion, increased 18% compared to last year. Net income was $771 million, marking a yearly increase of 158%.
