Cathie Wood and her Ark Invest firm continued to sell Tesla (TLSA) stock this week, dumping more than 170,000 shares in three consecutive sessions as TSLA tumbled more than the broader S&P 500 index.
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Cathie Wood’s Ark Investment Management sold 62,367 Tesla shares for around $16 million Thursday, based on Tesla stock’s closing price of 255.70, according to the company’s daily trade disclosure.
On the week, Wood sold 171,617 TSLA shares over Tuesday, Wednesday and Thursday.
Wood’s Tesla trades this week were done through the ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW). TSLA is the top holding in ARKK, with a 11.08% weight. Meanwhile, in ARKW, Tesla sits fourth with a 6.78% weight.
Cathie Wood’s decision comes as Tesla stock, ahead of Friday trade, has dropped 6.8% on the week. The S&P 500 dropped around 2.5% so far.
Last week, Cathie Wood began selling Tesla stock after taking nearly a month off from touching her TSLA holdings. Wood has been locking in profit on Tesla stock since mid-June and the total number of shares sold since June 12, including Thursday’s sale, amounts to more than 1 million.
Cathie Wood: Tesla Stock
Tesla stock fell 4% to 245.17 Friday during market action, dropping below its 50-day line. On Thursday, shares fell 2.6% to 255.70, essentially round-tripping all of the prior week’s gains spurred by the bullish analyst call on the EV maker’s Dojo supercomputer and self-driving prospects.
On Sept. 11, shares vaulted 10.1% as Morgan Stanley analyst Adam Jonas hiked his price target by 60% to 400, citing potential huge gains from Tesla’s Dojo supercomputing efforts.
The stock now has a proper cup-with-handle base, giving it a 278.98 buy point, according to MarketSmith analysis.
Meanwhile, analysts maintain that the United Auto Workers strike against Ford (F), General Motors (GM) and Stellantis (STLA) is good news for nonunion Tesla.
With Tesla’s third quarter also soon coming to an end, Wall Street has revised its view on vehicle deliveries. The consensus view is Tesla will deliver 468,000 vehicles in Q3, down from the previous view of 470,000, according to FactSet. However, some analysts believe Tesla’s Q3 total will come in below Q2’s record-setting 466,000 delivered vehicles.
The Cathie Wood stock ranks third in the 35-stock IBD automaker industry group. The S&P 500 component has a 96 Composite Rating out of 99. Shares have an 92 Relative Strength Rating and its EPS Rating is 93 out of 99.
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