Why is Cathie Wood selling Tesla shares?
Cathie Wood's Ark Invest has been selling its Tesla shares this 2 months. Ark trimmed its Tesla stake yet again on Friday, Aug 11, marking its 2nd straight day of selling.
The disposal of 31,749 shares would have fetched Ark USD7.70 million, based on closing price of USD242.65. The day before, Ark sold 76,425 Tesla shares worth USD18.75 million. For the week, the firm has shed Tesla stake worth USD26.45 million.
Ark has been offloading Tesla shares since mid-June, and the total number of shares sold since June 12, including Friday's sale, amounted to 915,565.
Tesla bulls would say that it's normal sales and after the sales, the stock is still a top holding of the flagship ARRK fund, with a portfolio weighting of 10.67%.
Something is unusual with the sales. Wood's Ark is into the habit of buying its key portfolio stocks when they drop and take profits in them when they rise. Ark's recent Tesla trades have not conformed with this pattern. She is not selling into strength, but selling into weakness.
Why is Cathie Wood not selling into strength, but selling into weakness? She could have sold near the highs. But she sold around 242 which are at 2-month lows. This is highly strange.
The only reason she done that is that she expects Tesla to fall further. So she was desperate to sell.
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Andrea_The_Noob : Because the price was high and she wants to take profit… Duh
不好解释 Andrea_The_Noob : If you want to make a profit, you don't need to wait until this time at all; you can do it on the day of the earnings report, now it's falling from the ground
bullrider_21 OP : The article will never state the true reason for the sales. But a good investor can read between the lines and know the true reason. An investor who is not good will just take the reason at face value.
MonkeyGee : Because she wants to buy XPENG!![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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bullrider_21 OP MonkeyGee :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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bullrider_21 OP : She is still selling Tesla shares at the lows.
MonkeyGee bullrider_21 OP : well that is expected. they call her the buy high sell low lady.
bullrider_21 OP MonkeyGee :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")