shares in this article
• Tesla with record numbers
• Figure template drives Tesla stock
• ARK CEO Cathie Wood sells Tesla shares
Tesla on record hunt in the first quarter of 2022
After the electric car company Tesla opened its books for the first quarter of 2022 last week, investors were enthusiastic. The US automaker was able to prove itself despite delivery problems and production downtime in China and even set new records in terms of sales and profits. Revenue rose in the first quarter of the year compared to the same period last year by 81 percent to 18.8 billion US dollars, while profits rose by 658 percent to 3.3 billion US dollars. In addition, CEO Elon Musk announced that the production of robotic taxis should start from 2024, which should guarantee passengers cheap transport options. Production is also gradually starting up in the Gigafactory in Berlin, which opened in March.
Tesla shares on the upswing according to the numbers
The news led to a euphoric price jump on the stock market. While Tesla shares on the NASDAQ were still trading at $977.20 on April 20 before the balance sheet was presented, after the strong numbers on the following day, they ultimately rose by 3.23 percent to $1,008.78. At the daily high, the paper even reached a value of 1,092.22 US dollars.
ARK boss Cathie Wood sells Tesla shares
ARK boss Cathie Wood apparently used this jump in price to sell some Tesla shares profitably. As the Twitter account “Ark Invest Daily” shows, citing the investment company’s daily trading updates, the star investor parted ways on April 20, i.e. before the figures were presented, from 67,884 Musk Group papers that were previously in the flagship -ETF ARK Innovation ETF. After the financial data for the first quarter of 2022 was published, the market expert released additional shares. On April 21, another 67,5444 shares flowed out of the ARK Innovation ETF, including the ARK Autonomous Tech. & Robotics ETF and ARK Next Generation Internet ETF were reduced by 14,169 and 11,477 Tesla shares, respectively. According to the company’s balance sheet, Wood’s Tesla sales alone should have brought in almost 100 million US dollars.
Despite sales: Wood still believes in Tesla
Nevertheless, the investor has by no means given up on the e-giant: with a stake of 9.64 percent (as of April 26, 2022), the shares in the e-car manufacturer still make up the largest position in the innovation fund. But also in the ARK Autonomous Tech. & Robotics ETF and in the ARK Next Generation Internet ETF, Tesla stock remains the top holding. “We have [Tesla-Aktien] sold recently because they’ve performed so well relative to the other stocks in our portfolio,” ARK’s CEO told Bloomberg earlier this month. “They’ve been a good source of cash and we have took the profits and reinvested them in other stocks that we feel have been unfairly penalized.”
A few days before the Musk Group published its figures, the star investor also adjusted the price target for Tesla shares. Wood expects the stock to trade at $4,600 by 2026. Even in a bear scenario, the paper should still be at 2,900 US dollars, ARK even considers 5,800 US dollars to be possible for a bullish market development. Most recently, Tesla shares cost US$ 876.42 (closing price on April 26, 2022).
Made more changes to ARK ETFs
But the investor didn’t just screw on the Tesla stake: Wood bought a total of 68,294 shares in the Canadian software company Shopify, which develops e-commerce applications, for the ARK Innovation ETF and the ARK Next Generation Internet ETF. Recently, the IT group made a name for itself with an upcoming share split and the planned takeover of the tech start-up Deliverr, but investors were not very enthusiastic about the news. Additionally, ARK added to existing positions by buying stakes in Roku, Zoom, Roblox, and Robinhood.
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