Cathie Wood-Led Ark Invest Sells Over $6.5M Worth Of Tesla Stock, What's Going On?

On Tuesday, Cathie Wood-led Ark Invest made a significant move by selling over $6.5 million worth of Tesla Inc TSLA shares. This sale comes amid Tesla’s rebound ahead of its Q3 results announcement, marking a continuation of Ark's selling spree of the EV maker's stock.

The Tesla Trade

Through its flagship Ark Innovation ETF ARKK, Ark sold 26,248 shares of the Elon Musk-led automaker. The transaction was valued at $6.7 million, based on Tesla’s closing price of $254.92 on Tuesday.

A day earlier, Ark Invest, through the Innovation ETF sold 7,759 Tesla shares valued at approximately $1.97 million. Investors have been wary due to Tesla's successive price cuts and their potential impact on margins. Ark has been a seller of Tesla since mid-June, even as they remain bullish about its prospects.

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Wood has expressed her belief in Tesla, emphasizing its potential upside over the next five years, especially in the expansion of artificial intelligence. She sees more promise in Tesla than in Nvidia, despite the latter's entry into the one-trillion-dollar market capitalization club.

Other Key Trades:

• CRISPR Therapeutics AG CRSP – Ark Invest bought 200,999 shares, increasing the ETF's holding by 0.1493 through ARKK and ARK Genomic Revolution ETF ARKG.
• Nurix Therapeutics Inc NRIX – 78,591 shares were added, marking a 0.031% increase in the ETF's holding through ARKG.
• Ionis Pharmaceuticals Inc IONS – Ark sold 48,500 shares, reducing the ETF's stake by 0.1484% through ARKG.

Wood's confidence in Tesla is underscored by her perspective on the company's autonomous and robotaxi potential, anticipating significant revenue and margin expansion ahead for the EV maker.

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