It's Cathie Wood vs. artificial intelligence when it comes to the stance on Tesla Inc's TSLA near-term performance, with one seeing it as a time to book profit in the Elon Musk-led electric vehicle company’s stock and the other as time to buy.
The Tesla Stock: Tesla stock joined the $1 trillion market cap in October after shares climbed on the back of record third-quarter deliveries and a large order from a rental company.
That valuation dipped under $1 trillion this week as Musk sold more shares. The stock is already down about 15% this month but has held on to its yearly gain and is up about 34% year-to-date.
See Also: Famed Robot-Run ETF Says This Is Why It Now Has Tesla As Its Top Holding
The billionaire entrepreneur has sold shares worth $13 billion in the past month to pay the taxes on the exercise of options that expire next year.
To Buy Or To Sell? Popular money managing firm Ark Invest, led by Wood, continues to sell shares in Tesla despite the stock’s recent sluggishness, while QRAFT AI-Enhanced US Large Cap Momentum ETF AMOM, an exchange-traded fund driven by artificial intelligence, has picked a new stake in Musk’s company.
Wood, a Tesla super-bull, has sold shares worth over a billion in Tesla since September to book profit. This month alone, Ark Invest has sold 393,556 shares in Tesla, a stock that continues to be its largest bet.
See Also: Cathie Wood Sells Another $88M In Tesla Day After Piling Up Stake In Chinese EV Rival
The popular money manager has been for years piling up shares in the electric vehicle company at far lower levels, a stock it predicts would hit the $3,000 mark by the end of 2025. Wood is known to not be hesitant in booking profits in favorite stocks when they run up significantly and seek to buy back again at lower levels.
In comparison, AMOM had booked profit in Tesla and completely exited the stock before February this year when shares were trading at near $900 levels. It had later in May loaded up about $1.4 billion worth of Tesla shares on the dip.
Tesla is currently its largest holding with a 7.7% weight, after the piling-up earlier this month.
AMOM, a product of South Korea-based fintech group Qraft, tracks 50 large-cap U.S. stocks and reweighs its holdings each month.
What’s Next?: Tesla continues to be on the growth path and is racing to end the year building nearly half a million electric vehicles in China — its second-largest market outside the U.S. — almost as many as it sold globally last year.
It also has two other Gigafactories under construction — Texas and Berlin — which it aims to have up and running before the end of the year.
Tesla CFO Zack Kirkhorn had in October said the company expects to grow its EV deliveries at an average annual rate of 50% over a multi-year horizon.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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