Fund manager Cathie Wood’s Ark Invest continued its Tesla selling spree and disposed more of the electric vehicle maker’s stock on Monday.
Ark, through its Ark Innovation ETF ARKK sold 7,759 shares on Monday, valued at $1.97 million, based on the stock’s closing price of $253.92. Tesla rallied 1.12% on Monday, capitalizing on the broader market strength.
Despite the gain in the previous session, the stock is still trading way off the year’s intra-day high of $299.29 hit on July 19, the day the company reported its second-quarter results. Tesla’s successive price cuts this year have left investors worried about the demand picture and the effect of the price cuts on margins.
Ark has been a seller of Tesla since mid-June despite the firm and its founder professing faith in the company and remaining bullish about its prospects.
Tesla is scheduled to report its third-quarter results Wednesday after the market closes. Analysts are wary of further margin contraction, although they expect the auto gross margin, excluding regulatory credits.
In premarket trading, Tesla eased 0.41% to $252.88, according to Benzinga Pro data.
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