Cathie Wood’s asset management firm, Ark Invest, has once again offloaded shares of EV giant Tesla (TSLA). According to the most recent trading statement, 152,694 shares of Tesla were sold, for a total value of about $63.74 million.
Don't Miss Our New Year's Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Importantly, there are several speculations about the reasons behind Wood’s decision to divest her stake in TSLA stock. Firstly, ARK may be reaping benefits from the 62% jump in TSLA’s stock price in the past three months, and adjusting portfolios to invest in other promising stocks. Another key reason might be Wood’s effort to avoid being overly dependent on a single stock. As of December 31, 2024, Wood’s ARK Innovation ETF (ARKK) held 2.43 million Tesla shares worth approximately $1.06 billion, making up 15.93% of the ETF’s portfolio.
Wood Makes Other Portfolio Adjustments
Investors interested in Wood’s other major portfolio changes should note that she remains bullish on technology, healthcare, and industrial stocks. On the tech front, the investor bought 82,456 shares of chipmaker AMD (AMD) and 245,243 shares of GitLab (GTLB), the DevOps platform provider, amounting to $10 million and $13.8 million, respectively.
Other noteworthy buys include Amazon (AMZN) and Teradyne (TER), both acquired through the ARK Autonomous Technology & Robotics ETF (ARKQ).
Moving to healthcare, 78,536 shares of Illumina (ILMN) and 61,913 shares of Natera (NTRA) were purchased. In the industrial sector, nuclear products and services provider BWX Technologies (BWXT) attracted ARK’s attention, with over 12,800 shares acquired. Meanwhile, the ARKQ ETF took a new position in 3D Systems (DDD), buying 250,000 shares.
Is Tesla a Buy, Sell, or Hold?
Due to Tesla’s recent stock price surge, Wall Street remains cautious and remains on the sidelines for now. Moreover, analysts are doubtful whether Tesla could deliver 515,000 vehicles in Q4 to meet its 2024 growth forecast. However, if the company successfully hits this target, it could bolster investor confidence in the stock.
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 11 Holds, and nine Sells assigned in the past three months. At $294.30, the average Tesla price target implies a 27.1% downside potential.
