On Wednesday, Cathie Wood-led Ark Invest made headlines by selling nearly $6.3 million worth of $Tesla (TSLA.US)$ shares, a move that comes amid Tesla's rebound ahead of its Q3 results announcement.
The Tesla Trade
Ark Invest sold 25,908 shares of the Elon Musk-led automaker, marking a continuation of the firm's selling spree of Tesla stock. The sale, made through Ark's flagship $ARK Innovation ETF (ARKK.US)$, was valued at $6.29 million based on Tesla's closing price of $242.68 on Wednesday. It should be noted that Tesla continues to make up for ARKK's top holdings and has a 9.97% weight in the ETF as of the time of publishing.
The sale followed Tesla's Q3 earnings report, where the EV giant reported revenue of $23.35 billion, missing the Street consensus estimate. The company attributed the fluctuations in revenue to growth in vehicle deliveries and other business lines, negatively impacted by a lower average selling price and foreign exchange impact.
Tesla's Q3 earnings highlights also included an EPS miss and the anticipation of the Cybertruck launch set for November 2023.
Other Key Trades:
Ark Invest purchased 136,790 shares of $Roku Inc (ROKU.US)$, increasing its stake and showing confidence in the streaming platform's growth prospects through ARKK, $ARK Next Generation Internet ETF (ARKW.US)$, and $ARK Fintech Innovation ETF (ARKF.US)$.
The firm also bought a significant number of shares in $10x Genomics (TXG.US)$ and $Intellia Therapeutics (NTLA.US)$, indicating a strong belief in the biotech sector's potential.
On the selling front, aside from Tesla, Ark Invest sold 223,652 shares of $Shopify (SHOP.US)$, aligning with its strategy of portfolio rebalancing.
These trades reflect Ark Invest's dynamic approach to managing their ETFs, constantly adjusting their holdings to optimize for growth and innovation. Wood's confidence in Tesla, underscored by her perspective on the company's autonomous and robotaxi potential, anticipates significant revenue and margin expansion ahead for the EV maker.