Cathie Wood, the CEO and investment lead of Ark Invest, reiterated her firm's thesis for Tesla (TSLA) -) Sept. 18, saying that Ark's bear case for the company has it trading at $1,400 per share by 2027. The bull case, of course, has Ark targeting $2,000 per share by 2027.
Even the bear case, which would require Tesla to increase its valuation by several multiples, is two-thirds reliant on the as-yet, nonexistent autonomous taxi business, Wood said, which Ark thinks Tesla will dominate.
Related: Cathie Wood gushes over her favorite stock -- but experts aren't seeing the light
Despite the firm's long-standing bullish outlook on the electric vehicle company, which it has said on multiple occasions ought to be traded like a tech giant, rather than a car company, Ark is not opposed to the occasional sell-off.
And just a day after Wood defended her Tesla thesis, Ark's flagship Innovation fund trimmed its holding in Tesla by 77,170 shares, worth around $20.5 million based on Tesla's closing price of $266.50 per share.
This latest — and largest — sell-off comes in the wake of several million-dollar Tesla sell-offs Ark has conducted throughout September. Ark sold a total of around 30,000 shares of Tesla Sept. 14, worth around $8.4 million. The day before, Ark sold more than 50,000 shares of Tesla, worth around $13.8 million.
Ark Innovation's Tesla holding remains the fund's largest, weighted at 11.35% and worth $829.4 million.
Tesla stock, up more than 115% for the year, rose slightly Wednesday morning.
More on Ark Invest:
- Cathie Wood knows how the U.S. economy can avoid a recession
- Cathie Wood slashes Tesla holdings to bet big on an unusual company
- Cathie Wood dumps another $1.8 million of a beloved stock after record earnings
Ark simultaneously dumped more than $7 million worth of Nvidia (NVDA) -) — the trimming, involving 16,897 shares in Ark's Genomic Revolution ETF, takes the fund's Nvidia holding down to 87,243 shares, worth a little less than $38 million.
Wood famously dumped much of Ark's Nvidia holdings right before the chip-makers skyrocketed in value following their record first-quarter earnings. Ark sold close to $3 million of its dwindling Nvidia shares last month, both before and after Nvidia reported second-quarter earnings.
Nvidia stock, up nearly 200% for the year, has established a market cap in excess of $1 trillion.
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