Cathie Wood and her Ark Invest firm sold off tranches of their Tesla stock holdings in consecutive sessions, unloading more than 73,000 shares this week before the EV giant reports second-quarter financials Wednesday.
Cathie Wood's ARK Investment Management sold 28,659 shares of Tesla Tuesday for about $8.41 million, based on TSLA closing price of 293.34, according to the company's daily trade disclosure.
On Monday, Wood unloaded 45,184 TSLA shares for $13.12 million. This week's Tesla stock selling was done through ARK Innovation ETF and ARK Next Generation Internet ETF.
After loading up on Tesla stock early in 2023 and watching shares run to 10-month highs, Cathie Wood has been selling Tesla stock.
Last week, Wood sold 20,874 shares Tesla for around $5.7 million. Since June 12, Cathie Wood has sold more than 700,000 shares of Tesla stock. Before that, Wood's ARK firm had purchased more than 1.3 million TSLA shares.
As of July 19, Tesla is the top holding in the ARK Innovation ETF with a 11.26% weight. TSLA is currently fifth in the ARK Next Generation Internet ETF, with a 6.58% weight. Tesla also ranks first for ARK Autonomous Technology and Robotics ETF, with a 15.03% weight.
Tesla stock edged down 0.5% to 291.73 Wednesday during market trade, ahead of earnings. On Tuesday, TSLA gained 1% to 293.49, with volume below average.
Cybertruck Sends Tesla Stock Higher
Over the weekend, just four days before earnings, Tesla tweeted a photo of the first Tesla Cybertruck made at its Austin plant. Tesla stock responded Monday, jumping 3.2% to 290.38.
TSLA rose 2.5% last week to 281.38. TSLA stock is up 128% in 2023. Shares are working on a 313.80 buy point from a deep consolidation going back to late September, according to MarketSmith analysis.
Meanwhile, the EV company reports second-quarter financials late on Wednesday, with analysts focused on profit margins. Wall Street expect profits to edge up around 4% to 80 cents per share with revenue totaling $24.22 billion, up 43% compared to last year. Tesla's Shanghai plant was shut down for several weeks in Q2 2022 due to Covid lockdowns.
Cybertruck: Margins, Margins, Margins
Investors will listen for news about an upcoming, updated Model 3. Analysts also will look for news on a future Mexico plant, which will make Tesla's next-generation model. Musk has hinted at the next-gen model, but no more than that.
And, of course, investors will want to hear more about when the Tesla Cybertruck will begin production and meaningful deliveries.
Morgan Stanley analyst Adam Jonas wrote Tuesday "now that the first Cybertruck has rolled off the line in Texas, the fun can start."
"Investors will have an ear out for any potential info on the new release during the earnings call Wednesday," Jonas said.
TSLA reported record global deliveries in early July — as price cuts, tax credits and discounts propelled demand well above Wall Street forecasts.
Tesla deliveries ran to 466,140 in the second quarter, sprinting past Q1's record 422,875 and Q4's 405,278. Model 3 and Y deliveries hit 446,915 in Q2. Model S and X deliveries picked up to 19,225. Production hit 479,700, exceeding deliveries once again, even with Tesla curbing output below capacity.
In Q1, Tesla's profit margins fell below 20% as the company executed an aggressive price-slashing strategy in the first part of 2023. Discounts and incentives continued in the second quarter and now into July.
The EV company's total gross profit came in at $4.5 billion, with Tesla's gross profit margin at 19.3%, down from 23.8% in the fourth quarter and 29.1% a year earlier.
Tesla stock ranks third in IBD's automaker industry group. It has a 98 Composite Rating out of 99. Tesla has a 96 Relative Strength Rating and its EPS Rating is 93 out of 99.
Please follow Kit Norton on Twitter @KitNorton for more coverage.
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