Cathie Wood's Funds Have Sold $266 Million In Tesla This Month, Despite Her $3,000 Price Target On The Company

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by Tyler Durden
Thursday, Sep 16, 2021 - 09:15 AM

If only we had access to the fantastic brain of Cathie Wood, we might be able to answer our own question as to why the fund manager keeps selling large chunks of her magnum opus investment in Tesla.

It seems odd not only because of how frequently Wood crows about Tesla and Elon Musk's brilliance, but also because the fund manager has a $3,000 price target on the name. Surely only the foolish would be selling a stock priced at $750 when it's on its way to $3,000, right?

The sales that prompted these questions took place this week: Wood has sold about $266 million in Tesla stock this month alone, spread across all of her ETFs.

Wood's ARK Innovation and ARK Next Generation Internet ETFs sold over 81,600 shares in Tesla - worth about $62 million - on Wednesday, Bloomberg reported Thursday morning. So far in September, her funds have sold more than 350,000 Tesla shares as the price of the automaker bounces back toward $750 per share.

"Our estimate for Tesla's success has gone up. The main reason for that is their market share. Instead of going down from year-end 2017 to today, it has actually gone up fairly dramatically," Wood said just days ago to Yahoo Finance

$3,000 marked the target for her "base case" for Tesla, the Yahoo report said.

When asked about selling some Tesla last year, Wood told CNBC that it was “wise portfolio management” to trim some of your winners to invest in other companies.

Tesla remains ARK's single largest holding still, Bloomberg reported.