HomeWorld NewsFintechArk Invest sells $5.7 million worth of Tesla stock

Ark Invest sells $5.7 million worth of Tesla stock

Ark invest has sold a small portion of its Tesla stock holdings. Cathie Wood’s company appears to have liquidated 0.5% of the shares in the company led by Elon Musk.

A total of 8,100 Tesla shares were sold for a value of $5.7 million

Only a month ago, Ark Invest had bought $71 million worth of the stock, taking advantage of a downturn. At the time, Ark had about 110,000 shares in its portfolio. 

Ark’s purchase should come as no surprise. Cathie Wood is in fact quite bullish on Tesla’s price, having predicted in a March forecast that the price could reach $3,000 by 2025, doubling the $1,400 by 2024 that had been predicted the year before. 

This prediction was made using the so-called “Monte Carlo” model. The decidedly optimistic outcome was the average of a bearish scenario and a bullish scenario and included a number of parameters, ranging from cars sold and revenue to the price of the stock itself.

Tesla’s stock performance

Tesla has seen its value rise in recent days. In the last week, it has seen an increase of almost 10% from $650 to the current $710. 

However, Tesla has fallen from its peak of $900 in early 2021. 

These days, the share price is probably driven by the trend of electric car sales in China. China is one of the most flourishing markets for electric cars, and Tesla is aiming to play a leading role there, even if it has to defend itself against competition from NIO, for example. 

In fact, NIO has more than doubled its sales compared to a year ago (when the market was affected by Covid). Ford and General Motors are also proving to be competitors that Tesla will have to watch out for. 

Tesla recently released its quarterly results, which saw it earn $1 billion in net income. This has been very encouraging for investors, as evidenced by the share price rising again. 

It is likely that Ark Invest, by choosing to sell a fraction of its shares, just wanted to monetize its gains

Eleonora Spagnolo
Eleonora Spagnolo
Journalist passionate about the web and the digital world. She graduated with honours in Multimedia Publishing at the University La Sapienza in Rome and completed a master's degree in Web and Social Media Marketing.