Brendan McDermid/Reuters
- Cathie Wood’s main fund sold Tesla shares worth $94 million Tuesday, continuing her selling spree.
- Tesla hit a $1 trillion valuation after Hertz announced an order for 100,000 Tesla vehicles.
- Despite her funds selling shares often, Wood has a five-year price target of $3,000 for the stock.
Cathie Wood’s flagship Ark Innovation fund sold 80,100 Tesla shares on Tuesday, taking a profit after the company hit a $1 trillion valuation.
As of Tuesday’s closing price of $1,172 a share, that stake would be worth $93.8 million.
Ark Invest’s exchange-traded funds have been shedding Tesla stock since the start of September, when its shares began an ascent, which allowed Wood’s fund to book profits. Including Tuesday’s sale, Ark has cumulatively sold about $1.3 billion worth of Tesla shares in the past three months.
Three Ark ETFs – ARK Innovation (ARKK), ARK Autonomous Technology & Robotics (ARKQ), and ARK Next Generation Internet (ARKW) – still count Tesla as one of their biggest holdings, at more than 10% each.
Wood is known to sell Tesla stock when it outperforms within a certain duration because not doing so “would not be wise portfolio management,” she told CNBC last year after slashing her stake in the company.
“We like to control our position sizes,” Wood said.
Even though Ark funds have been selling shares in the electric-vehicle maker often, Wood has a long-term bullish view on the stock, with a price target of $3,000 by 2025.
Tesla shares have gained 20% since Monday last week, when the car-rental company Hertz said it would place a record-breaking order for 100,000 vehicles. But the stock was down 3% at market close Tuesday after CEO Elon Musk said the automaker hadn’t signed a contract with Hertz.
Hertz told Insider in an emailed statement that it “has made an initial order of 100,000 Tesla electric vehicles” and deliveries had already begun.
Despite the recent dip, Tesla has added more than $300 billion to its market capitalization over the past month, which means the sales by Wood’s funds have still scored a profit.
Tesla rose 1% in regular trading on Wednesday to $1,181 a share and has gained 66% this year.
At the same time it shed Tesla shares, Ark Innovation bought the dip in Zillow, snapping up 300,000 shares in the online real-estate company Tuesday after it ended its homebuying business.
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