Ark trimming its largest holding by 18 million

Cathie Wood’s Ark Invest made headlines in April with its bold forecast for Tesla, predicting that the electric vehicle company would reach a value of $2,000 per share by 2027. At the time, Tesla’s stock was trading at just $160 per share, making Ark’s prediction seem quite lofty. Since then, Tesla’s stock has experienced significant growth, reaching a peak of $291 per share in mid-July before experiencing a slight decline. As of August 10, the stock closed at $245 per share, still far from Ark’s prediction but a notable increase from its April value.

Despite Ark’s bullish outlook on Tesla and its CEO, Elon Musk, the company has also been known to cash out on occasions. Recently, Ark’s flagship Innovation fund sold 72,631 shares of Tesla worth nearly $18 million, and its Autonomous Tech and Robotics ETF sold 3,794 shares worth just under $1 million. While Tesla surpassed analyst expectations for its second-quarter earnings, reporting revenue growth of 47% and earnings of 91 cents per share, the company’s stock experienced a 10% drop on July 20 due to reports of low gross margins and potential price cuts.

Although Tesla’s Chief Financial Officer, Zachary Kirkhorn, recently stepped down from his role, analysts have expressed confidence in Tesla’s long-term value. Elon Musk himself remains optimistic about the company’s potential for growth, stating during Tesla’s earnings call that he sees a path to a 10x increase in the company’s value. Despite recent fluctuations in Tesla’s stock, it has still gained 99.17% in value so far this year.

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