Ark Invest, founded by Cathie Wood, resumed its Tesla, Inc. TSLA selling on Wednesday amid the stock resurgence.
What Happened: Ark's flagship exchange-traded fund, the Ark Innovation ETF ARKK, sold 51,155 Tesla shares on Wednesday, daily trade disclosure from the firm showed.
The selling would have fetched the firm $13.88 billion, based on Tesla's closing price of $271.30 on Wednesday.
Tesla is still the top holding of ARKK with an 11.38% weighting in the ETF. Ark also holds Tesla in some of its other ETFs.
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Why It’s Important: Ark has been a seller of Tesla stock since mid-June this year, and it continued to offload the stock even amid the weakness seen after the electric vehicle giant's second-quarter earnings release.
The stock, however, has seen a rebound in the past three sessions, with Morgan Stanely analyst Adam Jonas' upgrade of the stock and upward price target adjustment to $400 serving as a trigger.
Wood has said in the past the fund's Tesla selling has nothing to do with the company's fundamentals, and she sees these transactions as a routine affair that would help raise capital to invest in some promising stocks.
Ark models a stock price appreciation to $2,000 by 2027, with much of the optimism premised on the yet-to-be-launched robotaxi service.
ARRK closed Wednesday’s session down 1.32% at $43.43, according to Benzinga Pro data. In premarket, it edged up 0.07%.
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