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How Earnings Affect Stock Price?
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$Tesla (TSLA.US)$Perhaps the biggest supporter of Tesla, Ark...

$Tesla (TSLA.US)$Perhaps the biggest supporter of Tesla, Ark Invest, has a $3,000 base case price target on the stock primarily due to its autonomous vehicle possibilities. The firm owns Tesla in three of its ETFs - the $ARK Innovation ETF (ARKK.US)$, the $ARK Autonomous Technology & Robotics ETF (ARKQ.US)$, and the $ARK Next Generation Internet ETF (ARKW.US)$- but was recently selling Tesla under $800 a share due to both redemptions and changes in portfolio allocation.
Cathie Wood has a self-imposed restriction not to buy if a stock is more than a 10% weight in an ETF, but there are no restrictions on when Ark Invest has to sell. It's very logical to ask why Ark is selling shares under $800 if it believes Tesla is going to $3,000. If Tesla's autonomous ambitions are impacted by any of the latest news, it would put a serious dent into this part of the bull case.
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