Summary
- Tesla bull ARK Invest sold over 51,000 shares of the electric automaker
- Sale aimed to equal out the concentration of certain securities in their ETFs
- ARK Invest predicts Tesla’s fivefold growth in the next 5 years
- ARK sold $21.8 million worth of Tesla shares
- Tesla shares are currently trading at around $420
Article
ARK Invest, a major Tesla bull, sold over 51,000 shares of the electric automaker on Wednesday night in order to adjust the concentration of certain securities within its ETFs. The sale was worth approximately $21,805,500 based on the closing price from Wednesday. This move was made in the ARK Innovation ETF, known as ARKK, along with the purchase of 348,733 shares of Tempus AI. Despite the sale, it is not an indication that the company is looking to unload its entire stake in Tesla to take a profit.
Cathie Wood, the founder of ARK Invest, predicts that Tesla will experience a fivefold growth in the next 5 years. As one of Tesla’s biggest bulls, ARK Invest has high expectations for the electric automaker. The firm recently discussed its projections for Tesla’s robotaxi fleet, which is expected to be a “multi-trillion dollar” opportunity and potentially dominate competitors such as Uber and Lyft. With lower operating costs for electric vehicles and the potential for reduced ride-hail prices, ARK believes that Tesla’s robotaxi rides could cost consumers significantly less than the current market rates.
Despite the sale of Tesla shares, ARK Invest remains optimistic about the future of the automaker. Tesla shares are currently trading at around $420 on Thursday. ARK Invest’s decision to sell a portion of its Tesla holdings may have been influenced by the need to rebalance its ETF portfolios and reduce exposure to specific securities. The firm, along with other bullish analysts like Wedbush and Morgan Stanley, continues to have a positive outlook on Tesla’s long-term growth potential.
For those interested in Tesla accessories, the Teslarati Marketplace offers a variety of products for Tesla owners. Readers can reach out to the author with questions and comments via email or connect with them on Twitter. Additionally, news tips can be submitted via email to the Teslarati team. Overall, ARK Invest’s sale of Tesla shares does not signify a lack of confidence in the company but rather an effort to manage its portfolio holdings and adjust its investment strategy accordingly.
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