Cathie Wood's ETFs Sell Tesla's Stock, After Another Earnings-Related Surge

Here's What You Need to Know About Cathie Wood's Latest Move

Cathie Wood's Ark Invest, known for its bullish stance on Tesla, has sold some of its Tesla stock. This move comes after Tesla's recent earnings-related surge, which saw its stock price rise by more than 10%. According to Ark's daily trade summary, the firm sold 169,055 shares of Tesla on Monday. This represents about 0.4% of Ark's total Tesla holdings, which were worth about $1.5 billion at the end of last week. This is not the first time that Ark has sold Tesla stock this year. In June, the firm sold about $1 billion worth of Tesla shares. However, Ark has also been buying Tesla stock this year. In May, the firm bought about $2 billion worth of Tesla shares.

Why Did Ark Sell Tesla Stock?

There are a few possible reasons why Ark sold Tesla stock. One possibility is that the firm believes that Tesla's stock is overvalued. Tesla's stock price has risen by more than 500% in the past year. This has led some analysts to believe that the stock is due for a correction. Another possibility is that Ark is simply rebalancing its portfolio. The firm may be selling Tesla stock to make room for other investments. Ark has been investing in a number of other companies this year, including DraftKings, Zoom, and Roku. It is important to note that Ark is still a major Tesla bull. The firm still owns about $1.3 billion worth of Tesla stock. Ark believes that Tesla is a long-term winner, and the firm is not planning to sell all of its Tesla holdings.

What Does This Mean for Tesla?

Ark's sale of Tesla stock is not likely to have a major impact on Tesla's stock price. Tesla's stock price is driven by a number of factors, including the company's earnings, its production targets, and the overall sentiment in the market. However, Ark's sale of Tesla stock is a sign that some investors are becoming more cautious about the company's stock. This could lead to a decline in Tesla's stock price in the short term.