Cathie Wood Sells TSLA & Takes To The Sky!
It’s the start of a new week, so I thought lets share something easy and equally significant.
Then I came across this post from IBD. (see below)
Let’s see what we can learn.
On Tue, 02 Jul 2024 - Cathie Wood and her Ark Invest firm shed some of their Tesla shares.
And in a surprise twist, loaded up on budding drone maker .
On Wed, 03 Jul 2024, Tesla stock jumped, while $Archer Aviation Inc.(ACHR)$ shares spiked.
How Much Sold?
On Tuesday, Wood and Ark Invest sold a total of 62,867 Tesla shares, that was worth 14.538 million, based on the 231.26 closing price, based on daily trade updates from the firm.
Of the 62,867 Tesla shares sold:
- More than 56,000 shares (89% of shares sold) were from $ARK Innovation ETF(ARKK)$ .
- Remaining 11% of shares sold were from $ARK Next Generation Internation ETF(ARKW)$ .
On the same fateful day, Tesla stock spiked +10.2% as Tesla topped Q2 delivery expectations.
Despite Q2 delivery was -4.0% lower than Q2 2023 YoY.
How Much Bought ?
On the same Tuesday, Cathie Wood and ARK purchased 406,912 shares of Archer Aviation, worth 1.51 million, based on the 3.72 closing price.
The San Jose-based Archer is developing electric vertical takeoff and landing (eVTOL) vehicles for urban environments, with the goal of creating a robust air-taxi service.
Stellantis Diversification?
It was also reported on Tuesday that Archer Aviation has secured an additional $55 million investment from $Stellantis NV(STLA)$ through a strategic funding agreement.
Interestingly, Stellantis has already invested $110 million in Archer back in 2023, (a) thrh’ a series of open market stock purchases and (b) investments via the strategic agreement.
The $55 million conditional investment arrived only after Archer completed a key test flight for its Midnight aircraft on 08 Jun 2024.
Events Sequence.
On 05 Jun 2024, Archer announced it received FAA certification to begin operating a commercial airline.
On 17 Jun 2024, Archer reached an agreement with Signature Aviation, giving it access to the world's largest network of private aviation terminals.
- With that, Archer plans to launch air taxi services at United Airlines (UAL) hubs at the Newark International and Chicago O'Hare Airports as early as late 2025.
- The agreement also gives Archer access to takeoff and landing sites in New York, Los Angeles, San Francisco and Texas.
- Signature Aviation operates > 200 private terminals globally.
- Archer plans to expand across the network as aircraft availability increases, according to the company.
On 20 Jun 2024, Archer revealed its plans for an air mobility network across 5 locations in the San Francisco Bay Area.
ARK Separate Purchase.
On Tue, 02 Jul 2024, Wood and ARK also added 3,788 shares of BLADE Air Mobility ($BLDE), yet another company trying to build out its urban air mobility network.
BLADE offers a mix of helicopter and charter jet services, rather than eVTOLs.
And the company says it is preparing to adopt electric vehicle aircraft.
Others.
Other eVTOL drone makers include:
- Eve Air Mobility (EVEX), a spinout of Brazilian jet maker Embraer (ERJ).
- China-based EHang Holdings (EH), developer of unmanned air taxi service.
Stocks - Tesla, Archer Aviation & Blade Air Mobility.
On Wed, 03 Jul 2024, Tesla stock surged +6.6%; marking 7 consecutive daily gains. (see above)
YTD, it is now down just a fraction at -0.82%.
On Tue, 02 Jul 2024, ACHR jumped +8.8% to rebound above its 50-day moving average (ma). (see above)
On Wed, 03 Jul 2024, ACHR stock spiked +13.2% to $4.21 per share.
YTD, ACHR is still -31% lower than in 2023.
On Tue, 02 Jul 2024, BLDE gained +2.7%.
On Wed, 03 Jul 2024, BLDE stock fell by -2.3%.
YTD, Blade share is at neutral grounds (0.00%), neither gain nor loss.
My viewpoints: (mine only)
It was barely a month ago that Ms Wood hypothesized that Tesla stock price will rise to $2,600 per share in 5 years time.
You would’ve assumed that she will hold onto her Tesla shares for the long term.
Expectedly, she bailed on Tesla’s first sign of gain. Ha, ha, ha.
I am no longer surprised by her ill-timed and speculative actions.
Her track record on Nvidia shares disposal will remain historic epic loss.
Had she sold Tesla, on Wednesday instead of Tuesday, she would have gotten more bangs for her stocks?
If you look at ARK’s 2024 purchase and sale of Tesla shares, strangely enough they were well-timed. (see above)
She sold in Nov / Dec when Tesla was still “relatively” high; around the $240 price range.
She then bought into Tesla through out Q1 2024, when it hovered between $230 & $170.
Penny Stocks.
Is Ms Woods laying the ground work for “pump and dump” when she bought into ACHR and BLDE?
Hoping that the masses will follow suit and she would exit as quickly as she taken a position?
Additionally, I wonder if Ms Wood is aware that when it comes to the eVTOL industry - there are more established makers. (see below)
That also mean higher probability of success - business wise.
When it comes to Tesla and Ms Wood, mirrors her buy & sell patterns and you would profit from it! Lol !
- Do you think Cathie Wood got it right this time selling Tesla, just like she did with Nvidia ?
- Do you think Tesla will rise further this week or will this cookie starts to crumble?
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Buy against Cathy!
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Great article, would you like to share it?