Cathie Wood's ETFs sell Tesla's stock, after another earnings-related surge

MW Cathie Wood's ETFs sell Tesla's stock, after another earnings-related surge

By Tomi Kilgore

Wood's flagship ETF's last sale of Tesla's stock was in early-July, after a blowout deliveries report sparked a 2-day surge of over 17%

Cathie Wood used a historic surge in Tesla Inc.'s stock to trim her large stake in the electric vehicle giant, just like she did a few months ago.

Ark Invest said late Thursday that the high-profile investor's flagship Ark Innovation ETF ARKK sold 77,513 shares of Tesla $(TSLA)$ that day. Based on Thursday's closing price of $260.48, those shares would be valued at $20.19 million.

The Ark Autonomous Technology & Robotics ETF ARKQ sold 7,943 Tesla shares on Thursday, which would be valued at $2.07 million.

The sales were made on a day that Tesla's stock rocketed 21.9%, which was the biggest one-day gain since the record 24.4% rally on May 9, 2013, on the back of strong earnings report.

Read: Tesla's stock sees best day in 11 years. Why it's still hard not to be bullish.

That doesn't mean Wood is any less bullish on Tesla's stock.

It's the Ark Innovation ETF's largest holding with a 15.1% weighting. The ETF owned 3.27 million Tesla shares valued at $851.76 million at Thursday's close.

The stock is also the largest holding - a 14% stake - of the Ark Autonomous Technology & Robotics ETF, which owned 422,824 shares valued at $110.14 million at Thursday's close.

Trimming stakes after a big rally is one way fund managers balance their portfolios, to keep the weightings of their holdings from rising too much.

The last time the Ark Innovation ETF trimmed its Tesla stake was on July 3, when it sold 13,213 shares, and on July 2, when it sold 56,425 shares.

The stock had soared a total of 17.4% over those two days, after Tesla reported second-quarter deliveries that beat expectations by a wide margin.

Also read: Cathie Wood's ETFs sell Tesla's stock for the first time in 9 months.

Tesla's stock was climbing 1.8% in morning trading, to put it on track to close at a 13-month high. It was trading 7.6% above where it closed on July 3.

-Tomi Kilgore

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October 25, 2024 10:54 ET (14:54 GMT)

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