In a surprising twist, Cathie Wood’s Ark Invest, a prominent investment firm known for its bold bets on disruptive technologies, has sold a significant amount of Tesla Inc (TSLA) shares. The move comes just after Tesla reported impressive third-quarter earnings, beating estimates and showcasing improved margins. The company also unveiled a promising vehicle delivery outlook for 2025, a key highlight for analysts.
Ark Invest offloaded 85,456 Tesla shares from its flagship ARK Innovation ETF (ARKK) and ARK Autonomous Technology & Robotics ETF (ARKQ), representing a transaction valued at $22.22 million based on Tesla’s closing price of $260.48 per share. Notably, this sale transpired on the same day Tesla stock surged by a remarkable 21.9%.
The rationale behind Ark Invest’s decision to sell Tesla shares amidst such positive news remains unclear. However, this move has sparked considerable debate among market watchers, particularly given Wood’s previous bullish stance on the electric vehicle giant.
Earlier in July, Wood had expressed her support for Ark Invest’s $5 trillion valuation forecast for Tesla, even suggesting it might be a conservative estimate. She had cited the immense potential of the Optimus humanoid robot, projecting global demand of over 20 billion units for both consumer and industrial applications. This bold prediction highlighted Ark Invest’s belief in Tesla’s long-term growth trajectory.
The recent sale follows a similar move in August, when Ark Invest unloaded $21 million worth of Tesla stock. This recurring pattern of selling Tesla shares despite its strong performance has raised questions about Ark Invest’s overall investment strategy.
In addition to the Tesla trade, Ark Invest made a series of other significant transactions. Its ARKG ETF sold shares of Vertex Pharmaceuticals Inc (VRTX), a leading biotech company focused on genetic medicine. Meanwhile, both ARKG and ARKK ETFs invested in CRISPR Therapeutics AG (CRSP) and Intellia Therapeutics Inc (NTLA), companies developing groundbreaking gene-editing technologies. Further, ARKG purchased shares of Cerus Corp (CERS), a biotech company specializing in blood safety, and ARKK and ARKQ ETFs acquired shares of Teradyne Inc (TER), a leading semiconductor equipment supplier.
Ark Invest’s latest trades underscore its dynamic investment strategy, which often involves shifting its portfolio based on market trends and emerging technologies. The firm’s decision to sell Tesla shares amidst a period of positive news has generated significant interest and begs the question: is this a buying opportunity for investors?