TESLA stock price has been going up like crazy lately. TSLA is up 8% in the last 24 hours, up more than 20% since the beginning of 2021, and up more than 800% during 1 year. This is quickly becoming unsustainable and analysts are warning that TESLA might soon go through a massive correction, and now TESLA’s one of the biggest bullish investor ARK invest has started selling their TSLA stock.
ARK Invest focuses solely on disruptive innovation and offers investment solutions to investors seeking long-term growth in public markets. ARK is managed by Catherine Wood. With over 40 years of experience identifying and investing in innovation, Cathie founded ARK to focus solely on disruptive innovation while adding new dimensions to research. Catherine Wood was one of the first investors who predicted that TESLA was drastically undervalued and that the price would soon skyrocket. In 2020 ARK ETFs were one of the best performing actively managed funds. They beat the market and other ETFs by huge margins, showing gains of more than 100% on all of their ETFs, ARKG gained even more than 200%. You can read more about ARK and their ETF’s here.
However, on Thursday and on Friday ARK invest started selling TSLA stock in huge amounts. On Thursday they sold 122,288 shares of Tesla from their ETF ARKK, 24,881 shares of TSLA from their ARKQ ETF, and 18,034 shares from ARKW, which means on Thursday they sold 165,203 shares worth more than $145 million.
This sell-off continued on Friday. From ARKK they sold 59,500 shares of TSLA and 33,553 from ARKW ETF, totaling 93,053 shares which is worth almost $82 million at today’s price. ARK invest still owns a lot of Tesla stock, however, big players like this do not usually sell all of their stocks at once in order to avoid disrupting and alarming the market. Seems like ark is slowly selling out their TSLA holdings to make sure they won`t affect the price too much top quickly. (if you can call selling more than $200 million worth of stock slowly).
ARK invest is usually really good at timing the markets, that’s why they attracted billions of new dollars over the last year. Right now this sell-off of TESLA might mean that they think the stock is due to go through correction. ARK invest is not the only Financial giant that thinks that TSLA might go through correction.
The “Big Short” Iconic investor Michael Burry started shorting TESLA a while ago. You can read more details regarding that here. Michael Burry, the hedge-fund manager whose bet against the housing market was depicted in “The Big Short,” aired a contrasting opinion on Thursday night. The investor tweeted that, like his famous 2008 gambit, his short position in Tesla stood to print huge gains. “Well, my last Big Short got bigger and bigger and BIGGER too,” he said, adding that bullish investors should “enjoy it while it lasts.”
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