Cathie Wood and her Ark Invest firm sold more than $25 million in Tesla (TLSA) stock Wednesday, as TSLA led the S&P 500 index, powering above a key level.
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Cathie Wood’s Ark Investment Management sold 97,599 Tesla shares for around $25.5 million Wednesday, based on Tesla stock’s closing price of 261.16, according to the company’s daily trade disclosure.
Wood’s Tesla trades were done through the ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW) and ARK Autonomous Tech ETF (ARKQ). TSLA is the top holding in Cathie Wood’s ARKK, with an 11.3% weight. In ARKQ, Tesla is also the top stock with an 11.64% weight. Meanwhile, in ARKW, Tesla sits fourth with a 6.77% weight.
With Tesla bulls betting on a fourth-quarter rebound in deliveries with the revamped Model 3 in China and the expected Cybertruck delivery launch, Tesla stock surged 5.9% to 261.16 Wednesday during market action.
TSLA cleared its 50-day line Wednesday and has been added to IBD Leaderboard and SwingTrader, with a buy zone of 254.77 to 258.40 for aggressive investors. Late Tuesday, Tesla announced its newly launched U.S. Model Y variant is now available in the U.S.
The EV company’s starting price for the rear-wheel drive Model Y is $43,990, with an official range of 260 miles, according to Tesla’s website. Deliveries are set to begin in October or November. The prior base Model Y, which is no longer available, started at $47,740. That continues a yearlong trend of lower average selling prices for Tesla EVs.
On Thursday, TSLA edged up 0.17% early in premarket action.
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Cathie Wood: Tesla Stock Performance
Last week, Tesla stock rose 2.2% to 250.22. On Monday, shares closed just above the 50-day line, before retreating modestly on Tuesday.
Tesla stock currently resides in a cup-with-handle base, with a 278.98 buy point, according to MarketSmith. Analysts also maintain that the United Auto Workers strike against Ford (F), General Motors (GM) and Stellantis (STLA) is good news for Tesla, a nonunion shop.
Cathie Wood began in September selling Tesla stock again after taking nearly a month off from touching her TSLA holdings. Wood has been locking in profit on Tesla stock since mid-June and the total number of shares sold since June 12, including Thursday’s sale, amounts to more than 1 million.
Tesla stock ranks fourth in the 35-stock IBD Automaker industry group. The S&P 500 component has a 96 Composite Rating out of a best-possible 99. The Cathie Wood-backed stock has an 96 Relative Strength Rating and its EPS Rating is 93.
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