Recently, Tesla's (TSLA, Financial) stock price climbed by 22%, prompting Cathie Wood of ARK Investment Management to sell $22.22 million worth of Tesla shares. Her company carried out several transactions, most notably offloading Tesla stock. Through the ARK Innovation ETF (ARKK) and ARK Autonomous Technology & Robotics ETF (ARKQ), they sold 85,456 Tesla shares. At the closing price of $260.48 per share, the transaction totaled $22.22 million.
The sharp rise in Tesla's stock was spurred by an unexpected third-quarter earnings report. Despite revenue falling slightly short of analysts' expectations, the adjusted earnings per share were $0.72, surpassing the expected $0.60. This marks a turnaround as Tesla had not met profit expectations for several quarters. Additionally, the gross margin reached 19.8%, exceeding the anticipated 16.8%.
During an earnings call, CEO Elon Musk predicted a slight increase in vehicle deliveries this year with a potential 20% to 30% growth next year. In July, ARK Investment had given Tesla a valuation of $5 trillion, a figure Elon Musk supported, suggesting that the valuation didn't consider the potential impact of their humanoid robot, Optimus. Musk noted that if Optimus production reaches 100 million units annually, the value added to the company would be substantial.
It's noteworthy that ARK Investment sold $21 million worth of Tesla shares in August. Besides Tesla, they also sold Vertex Pharmaceuticals stock and invested in CRISPR Therapeutics, Intellia Therapeutics, Cerus, and Teradyne.
