Cathie Wood Trims Tesla Holdings Amidst Musk vs. Zuckerberg Gladiator Buzz

Cathie Wood Continues to Reduce Tesla Stake as Ark Sells Almost $19M in Stock

Cathie Wood and her firm, Ark Invest, continued their trend of selling Tesla (TSLA) stock holdings, disposing of over 76,000 shares on Thursday. In a separate development, Elon Musk made announcements on Friday regarding his proposed cage match against Mark Zuckerberg, the head of Meta (META).

Ark Investment Management, led by Cathie Wood, sold 76,425 shares of Tesla on Thursday, amounting to around $18.75 million based on Tesla's closing price of $245.34. This information comes from the daily trade disclosure of the company.

Both of Cathie Wood's ETFs, the ARK Innovation ETF (ARKK) and the ARK Autonomous Technology and Robotics ETF (ARKQ), engaged in the sale of Tesla stock on the same day.

As of August 11, Tesla maintains its position as the largest holding within the ARK Innovation ETF, accounting for 10.67% of the portfolio's weight. Similarly, it holds the top spot in the ARK Autonomous Technology and Robotics ETF, representing 12.98% of the fund's weight. Within the ARK Next Generation Internet ETF (ARKW), Tesla ranks fifth, comprising 6.27% of the portfolio's weight.

On Friday, Tesla's stock saw a decrease of 2.5%, trading at $239.37. However, the previous day had seen a gain of 1.3%, bringing the stock's price to $245.34.

Cathie Wood Maintains Positive Outlook on TSLA

Cathie Wood continues to express confidence in Tesla's future prospects. Since mid-June, Wood has been gradually selling Tesla (TSLA) stock to secure profits, with the most recent sale on Thursday pushing the total shares sold since June 12 to 883,816.

Leading up to Tesla's second-quarter earnings report scheduled for July 19, Cathie Wood's firm systematically sold portions of its Tesla stock holdings across multiple sessions, amounting to over 73,000 shares. Following the announcement of Tesla's Q2 results, the stock experienced a significant drop of 9.7%. This decline caused the stock to fall below its 21-day exponential moving average, resulting in a loss of gains accumulated in July.

By August 8, Tesla's stock had dipped below its 50-day support level, marking the first instance since mid-May.

Despite her recent strategy of taking profits, Cathie Wood maintains an optimistic outlook for Tesla. ARK Investment Management, under Wood's guidance, anticipates that Tesla's share price will reach $2,000 by the year 2027, with projected sales ranging from $10.3 million to $20.7 million.

Musk and Zuckerberg Prepared for Gladiator-Style Showdown

In the early hours of Friday, Elon Musk made an announcement on X, formerly known as Twitter, revealing that he had engaged in discussions with Italy's Prime Minister, Giorgia Meloni, regarding the potential venue for his proposed fight with Mark Zuckerberg.

Musk's tweet stated that they had reached an agreement on a remarkable location for the fight. He also mentioned that the management of the fight would be entrusted to his and Zuckerberg's foundations, rather than the UFC.

This follows a statement made by UFC President Dana White on a podcast the previous Thursday, confirming the authenticity of the proposed cage match between Musk and Zuckerberg. White disclosed that both parties were genuinely interested in the fight and that discussions had taken place about hosting it at the Colosseum in Italy. He even mentioned having a meeting with the team of Italy's Minister of Culture to explore the feasibility of organizing the event at the historic venue.

Musk further detailed on Friday that the fight would be livestreamed on X and Meta platforms. He added that the setting would entirely embrace an ancient Roman theme, ensuring that everything within the frame reflects that era, devoid of any modern elements.

The genesis of this buzz dates back to June when Elon Musk initiated rumors about a potential cage match against Mark Zuckerberg through a post on X, where he expressed his willingness to engage in such a fight. This exchange of words emerged alongside the launch of Meta's Threads, positioned as an alternative to X.

In response to Musk's post, Zuckerberg used an Instagram story to respond with the words, "Send Me Location." Since then, the two billionaires have continued their playful exchange through social media, keeping the speculation alive.

Cathie Wood's Perspective on Tesla's Stock

The TSLA stock currently presents an official buy point for a cup-with-handle pattern at 299.29, stemming from an extended period of consolidation since last September. However, it's worth noting that the handle portion of this pattern is deeper than the recommended range of 12%-15%.

Following Tesla's Q2 earnings announcement on July 19, its stock has experienced a decline of approximately 18%. This drop has continued into August, with TSLA seeing a decrease of more than 8%. This downward trend follows a three-month period of growth.

On August 7, Tesla's stock hit a low of 242.76 due to news about the company's CFO stepping down. As a result, the stock closed below its 50-day moving average, marking the first instance since May.

In terms of its position within the automotive industry group according to IBD (Investor's Business Daily), Tesla's stock holds the third spot. It boasts a Composite Rating of 98 out of 99, signifying its strong performance. Additionally, Tesla garners a Relative Strength Rating of 91 and an EPS Rating of 94 out of 99. These metrics collectively highlight the company's financial health and stock performance.