This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.

Cathie Wood Continues To Trim Tesla Stake, Selling Another $66M Worth Of Shares

Benzinga

Contributor:
Benzinga
Visit: Benzinga

By:

Benzinga Staff Writer

Cathie Wood-led Ark Invest on Tuesday further lowered some of its exposure in Tesla Inc TSLA , booking profits in the stock as it showed some signs of recovery in the recent days after months of dull performance.

The popular asset management firm sold 88,924 shares — estimated to be worth $66.2 million — in the Elon Musk-led company on Tuesday, its third such trade in Tesla in September.

See Also: Cathie Wood Sells $138.5M Tesla Shares In Two Straight Sessions

With the latest sales, Ark Invest has trimmed a total of 272,572 shares — estimated to be worth about $200 million — in the Palo Alto, California-based company so far this month.

Tesla shares, which have risen about 1.5% since last week, closed 0.20% higher at $744.49 a share on Tuesday. On a YTD basis, Tesla shares have risen about 2%. 

Ark Invest deployed the Ark Next Generation Internet ETF ARKW  and the Ark Innovation ETF ARKK to sell shares in Tesla. Ark Invest also owns shares in Tesla via the Ark Autonomous Technology & Robotics ETF (BATS: ARKQ).

Wood’s firm holds large bets in Tesla, which it expects will hit the $3,000 mark at the end of 2025

Each of the three ETFs count Tesla as their largest exposure and held a total of 4.3 million shares — worth $3.19 billion — in the electric vehicle company, ahead of Tuesday’s trades. No other Ark ETF owns shares in Tesla.

Here are some of the other key trades for Ark on Tuesday:

  • Bought 235,600 shares in Zoom Video Communications Inc ZM.
  • Bought 236,373 shares in Robinhood Markets Inc HOOD.
  • Sold 30,905 shares in Iridium Communications Inc IRDM.

Benzinga’s Take: 

The latest share sale in Tesla does not necessarily imply Wood’s lack of conviction as the EV stock is still Ark’s largest holding by far; such readjustments by Wood’s firm in long-term holdings are not uncommon. Ark has been buying Tesla shares since much lower levels, and Wood has said the firm isn’t hesitant in booking profits on portfolio companies when they run up too high and then buy back at lower prices once they retreat.

Originally Posted on September 14, 2021 – Cathie Wood Continues To Trim Tesla Stake, Selling Another $66M Worth Of Shares

Disclosure: Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Disclosure: Interactive Brokers

Information posted on IBKR Traders’ Insight that is provided by third-parties and not by Interactive Brokers does NOT constitute a recommendation by Interactive Brokers that you should contract for the services of that third party. Third-party participants who contribute to IBKR Traders’ Insight are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Benzinga and is being posted with permission from Benzinga. The views expressed in this material are solely those of the author and/or Benzinga and IBKR is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

In accordance with EU regulation: The statements in this document shall not be considered as an objective or independent explanation of the matters. Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research.

trading top