"Female Stock Goddess" Sells Tesla Four Times in Seven Days! Is Cathie Wood Turning Bearish?
Wood previously stated that if a stock experiences a significant short-term increase, ARK will take profits and allocate funds to stocks that are not fully understood by others.
On Wednesday, Cathie Wood, known as the "Tech Stock Goddess," continued to sell Tesla stocks, despite verbally expressing her bullish stance on the company.
Tesla sold for a cumulative $50 million
ARK, through its flagship fund ARK Innovation ETF (ARKK), sold 32,080 shares of Tesla stock, worth approximately $8.42 million.
This is the fourth time in seven days that ARK's funds have sold Tesla stocks, with a total of 190,000 shares sold, valued at $50 million.
Last Wednesday and Thursday, Cathie Wood sold 51,155 and 30,389 shares of Tesla stock, respectively. On Tuesday of this week, she sold an additional 77,000 shares.
In an interview this week, Cathie Wood stated that she has set a bearish target price of $1,400 for Tesla in 2027 (with a base prediction of $2,000), with one-third of the target price related to electric vehicles and their scale, and two-thirds related to autonomous driving and the autonomous taxi platform.
Why sell Tesla?
Earlier at the end of July, Wood explained why she has been continuously selling Tesla stocks, stating that it is to better manage the investment portfolio.
Wood emphasized that the decision to sell Tesla stocks does not reflect the company's fundamentals, but rather a measure to raise funds for other promising investments.
She said, "Over the past six months, Tesla's stock price has more than doubled, while some of the other stocks we have invested in are still near their lows. When Tesla's weight in the portfolio exceeds 10%, we will sell and allocate the funds to stocks that we believe are not fully understood by others."
Regarding her investment strategy, Wood has previously stated that if a stock experiences a significant increase in a short period of time, ARK will take profits and allocate them to another "high conviction" trading strategy.
She used the example of flying taxi company Archer Aviation, stating that she expects the company's compound annual growth rate to be higher than Tesla's, but the stock is more speculative.