Cathie Wood’s ARK drops over $7M of Tesla shares

Cathie Wood’s ARK Invest dumped $7.3 million of Tesla stock after Goldman Sachs hit the EV maker with its fourth share downgrade of the month earlier this week.

TESLA ON AUTOPILOT REAR-ENDS WORK TRUCK ALONG PENNSYLVANIA INTERSTATE, POLICE SAY

On Wednesday, ARK’s daily trade notifications show two of the firm’s exchange-traded funds offloaded a total of 28,368 Tesla shares, with the Autonomous Technology & Robotics ETF selling 17,967 of those shares and the Next Generation Internet ETF letting go of 10,401.

ARK funds have now sold over a half million Tesla shares in June, while ARK’s technology ETF gobbled up 4,576 shares of Advanced Micro Devices worth over $500,000 based on the day’s $110.17 closing price.

Last week, Morgan Stanley and Barclays analysts cut the Elon Musk-run company's stock to equal weight.

Even with the analysts' reductions, Tesla’s price target was moved to $248 per share from $185, showing an increase in earnings-per-share estimates and a higher target multiple.

Despite Goldman Sachs' recent downgrade, the bank said it remains positive about Tesla’s long-term growth potential and competitive positioning, while the 108% rally since Jan. 1, reflects the firm’s bullish stance.

STELLANTIS LAUNCHES EV CHARGING BUSINESS

Tesla shares have fallen the last five days, after a recent winning streak of 13 consecutive trading days on Wall Street and a rough 23% pop in stock value the last 30 days.

Goldman Sachs pinned much of its downgrade on valuation, while also highlighting the difficult pricing environment for new EV vehicles.

HYUNDAI MULLS JOINING TESLA EV CHARGING STANDARD

According to analysts, the pricing issue for EVs will hurt Tesla’s non-GAAP gross margin in 2023.

GET FOX BUSINESS ON THE GO BY CLICKING HERE