Cathie Wood throws Tesla shares out of the depot by the dozen – which companies the ARK Invest boss is now relying on

• Tesla stock on strong run ahead of release of Q2 delivery numbers
• Cathie Wood sold Tesla shares several times in June
• ARK Invest added to NVIDIA peers and biotechs

The performance of Tesla shares is impressive this year: since the beginning of the year, the e-car manufacturer’s paper on the US tech exchange NASDAQ has increased by a whopping 109 percent, and in the last 30 days alone it has risen by around 24 percent (As of closing price on June 29, 2023). Tesla shares were also driven by the prospect of strong delivery figures for the second quarter. As “Investor’s Business Daily” reports, market experts assume that the US company will announce a new delivery record – probably on July 2nd. Tesla deliveries are expected to increase by an average of 74 percent to 445,000 vehicles, according to the news site. In the same period last year he suffered electric car-Pioneer, however, still under corona lockdowns in its Chinese plants, and production in the gigafactories in Berlin and Austin was also ramped up.

According to “Investor’s Business Daily”, analyst Alex Potter from the investment bank Piper Sandler was particularly optimistic about sales in the second quarter. He thinks that Tesla could have delivered up to 469,000 vehicles in the second quarter – but also admits that this forecast could be “a tad too high”. “Regardless of the outcome of this weekend, given the stock’s recent outperformance, we wouldn’t be surprised to see some profit-taking in the coming months,” Potter said. As the behavior of star investor and Tesla fan Cathie Wood shows, the analyst should be right. Because the ARK Invest boss had already started to part with Tesla papers on a larger scale in the run-up to the delivery figures.

Cathie Wood on a sell-off on Tesla stock

After Cathie Wood had bought numerous Tesla shares at lower prices for several ETFs of her investment company ARK Invest at the beginning of the year – and most recently at the end of April – she now apparently took profits and parted with several blocks of shares in June. As early as March, the star investor had thrown a total of around 270,000 Tesla shares out of the ARK Innovation ETF and ARK Next Generation Internet ETF – compared to the current sales, however, these were smaller reductions.

Now, in June, the star investor appeared to be on a selling spree in Tesla shares. On June 12, she sold a total of around 393,000 Tesla shares from the ARK Innovation ETF, the ARK Next Generation Internet ETF and the ARK Autonomous Technology & Robotics ETF. Just four days later, she again threw around 73,100 shares out of her fund – followed by the sale of around 31,590 Tesla shares on June 20th. But that’s not all: Between June 23rd and 28th, the ARK Invest boss reduced her Tesla holding by around a further 64,460 shares.

In total, Cathie Wood sold around 562,230 Tesla shares from the holdings of the three ETFs mentioned in June. Based on the last closing price of Tesla shares at USD 257.50, this block of shares would currently be worth around USD 144.8 million (as of the closing price on June 29, 2023). According to “Benzinga”, Tesla fan Wood still holds Tesla shares worth almost 1.2 billion US dollars despite the recent sales. Overall, it can still be attributed to the buyer side, since the sales in March and June are offset by higher purchases of around 1.37 million Tesla shares since the beginning of the year.

The star investor last grabbed these shares

But while Cathie Wood was putting the brakes on Tesla, she significantly increased her exposure to other companies in late June. In doing so, she relied primarily on chip and processor manufacturers who are benefiting from the current AI trend and are in competition with top dog NVIDIA, whose shares the investor classifies as too expensive. For example, Wood bought AMD twice for the ARK Autonomous Technology & Robotics ETF at the end of June and also bought shares from Taiwan Semiconductor Manufacturing (TSMC) for this and the ARK Next Generation Internet ETF on five occasions. The 23,159 AMD shares acquired by ARK Invest in June are currently worth around USD 2.58 million based on the last closing price of USD 111.24, and the newly added 142,932 TSMC shares are currently around USD 15.1 million US Dollars (as of closing prices on June 29, 2023).

Shares in the biotech companies Verve Therapeutics and Recursion Pharmaceuticals were also on the investor’s shopping list several times at the end of the month, although most of these ended up in the portfolio of the ARK Genomic Revolution ETF. However, some of Verve Therapeutics’ shares were also used to fill part of the gap left by the sale of Tesla shares in the ARK Innovation ETF.

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