Fund manager Cathie Wood and her ARK Invest Management firm sold millions more in Tesla on Wednesday as they continue cashing in during June. Tesla stock inched higher Thursday.
Wood sold 28,368 shares of Tesla stock Wednesday worth $7.27 million based on Wednesday's closing price of 256.24, according to ARK's daily trade updates.
ARK sold 17,967 shares from its ARK Autonomous Technology & Robotics ETF and 10,401 shares from its ARK Next Generation Internet ETF, respectively.
On Monday, Goldman Sachs downgraded Tesla stock to neutral but ballooned its price target to 248 from 185 noting the "market is now giving the stock more credit for its longer-term opportunities."
Wednesday's move was ARK's second Tesla sale in a week. Wood also sold $7.1 million worth of Tesla stock Friday following a string of downgrades last week.
Tesla Downgrades
Elon Musk's electric vehicle company received three downgrades within three days last week. Morgan Stanley and Barclays both downgraded TSLA stock to equal weight from overweight. Morgan Stanley noted that the company should benefit from the artificial intelligence boom, but recent AI expectations brought shares to a fair valuation.
In its downgrade, Barclays called the recent rally "too sharp relative to challenging near-term fundamentals," while questions about margins and vehicle demand remain concerns. DBZ Bank double downgraded TSLA to a sell rating on Friday.
Still, many analysts expect Tesla will post another delivery record for Q2 in an announcement expected on Sunday. Wall Street predicts Tesla deliveries up 445,000 for the quarter, a 74% increase from Q2 2022 when the Shanghai production plant was shuttered for pandemic lockdowns and the Berlin and Austin, Texas plants were just ramping up production.
Futures: Rate-Hike Odds Rise With Inflation Data Due; Apple Eyes $3 Trillion
Cathie Wood Cashes In During June
After buying up Tesla on the cheap throughout 2023, Cathie Wood has been selling in June. Wood has now sold nearly 522,400 TSLA shares in June. Before this months sell off, Cathie Wood's funds purchased more than 1.3 million TSLA shares in 2023. Wood has now sold more than 808,000 shares this year.
Tesla Stock
Tesla stock rose 0.5% Thursday. Shares rose 2.4% during trading Wednesday. TSLA is trading in a profit-taking zone, after leaping 23% above a breakout from a cup base on June 1.
Shares bolted 109% so far this year.
You can follow Harrison Miller for more stock news and updates on Twitter @IBD_Harrison.
