Cathie Wood and her firm, Ark Invest, continued their trend of selling Tesla (TSLA) stock holdings, disposing of over 76,000 shares on Thursday.
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.
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