After taking nearly a month off from touching Tesla, Cathie Wood and her Ark Invest firm decided to sell more of their TSLA stock holdings in consecutive sessions this week, unloading more than 80,000 shares Wednesday and Thursday. Tesla stock fell Friday.
Cathie Wood's Ark Investment Management sold 30,389 for around $8.39 million Thursday, based on TSLA's closing price of 276.04, according to the company's daily trade disclosure. This follows Wood's decision Wednesday to sell 51,155 shares of Tesla for about $13.88 million. These are the first Tesla trades Wood has made since Aug. 15 when she sold 1,800 shares.
Wood's Tesla trades this week were done through the ARK Innovation ETF and ARK Next Generation Internet ETF. TSLA is the top holding in ARKK, with a 11.46% weight. Meanwhile, in ARKW, Tesla sits fourth with a 6.85% weight.
Selling High On TSLA
Cathie 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 around 1 million.
Ahead of Tesla's second-quarter earnings on July 19, Cathie Wood sold tranches of her firm's Tesla stock holdings in consecutive sessions, unloading more than 73,000 shares. Following the EV company's Q2 results, TSLA tumbled 9.7%, falling below the 21-day exponential moving average and giving up July gains.
Tesla stock then continued to fall in a three-week slide before recently recovering.
Despite Cathie Wood's recent profit taking, she remains bullish on Tesla. ARK Investment Management predicts Tesla will reach a $2,000 per share price in 2027 and vehicles sales between 10.3 million and 20.7 million units.
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Cathie Wood: Tesla Stock
Tesla stock has forged a new base with a proper buy point at 299.29, according to MarketSmith. Shares are up around 5% in September, following a surge on Monday.
TSLA stock hit resistance around its 50-day line in late August to early September. 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.
That move pushed Tesla stock above its 50-day line and its Aug. 31 high of 261.18, an early entry for aggressive investors.
On Friday, Tesla dropped 0.6% to 274.39. On Thursday, shares rose 1.8% to 276.04.
The stock ranks third in the 35-stock IBD automaker industry group. The S&P 500 component has a 97 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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