Tesla sold off hard on Friday, sending a sell signal to investors after the EV giant's robotaxi event. However, Cathie Wood and her Ark Invest went ahead and purchased nearly $3 million in TSLA shares to end last week. Tesla stock moved higher Monday.
Cathie Wood's Ark Investment Management bought 12,730 TSLA shares on Friday, according to the company's daily trade disclosure. Based on the closing price of 217.80, Wood spent $2.77 million on the Tesla stock purchases.
Wood's Tesla trades were done through ARK Next Generation Internet. As of Oct. 14, Tesla stock is the third ranked holding in ARKW, with a 8.87% weight. Tesla stock sold off 8.8% to 217.80 on Friday, flashing a sell signal as shares decisively broke below the 50-day moving average in heavy volume.
While Tesla stock fell on Friday, Uber Technologies jumped 10.8%, moving above an 82.14 buy point.
Uber Jumps As 'Toothless' Tesla Robotaxi Is 'Best-Case Outcome'
Shares of TSLA advanced 0.6% to 219.16 during market action on Monday.
Wood, who has long been super-bullish on Tesla's autonomy push and robotaxi aims, attended Tesla's robotaxi event on Thursday. On June 12, Ark Invest updated its Tesla stock price target to 2,600 by 2029, estimating that around 90% of Tesla's enterprise value and earnings will be attributed to the robotaxi business in 2029.
Wood's Ark Invest tends to purchase Tesla stock and other positions amid sell-offs or when they break below key moving averages.
Tesla Stock Last Week
Tesla stock dived 12.9% to 217.81, its worst weekly loss since April. Friday's 8.8% tumble pushed Tesla decisively below its 50-day line in heavy volume. That's a notable Tesla sell signal. Recent buyers are likely sitting on losses. Longer-term holders, who have a low cost basis, can choose to remain so.
Tesla Robotaxi Event: Cybercab, Robovan Unveiled; Musk Sees Self-Driving 'Next Year'
Friday's sell-off followed the much-hyped Tesla robotaxi event. Chief Executive Elon Musk showed off the Cybercab along with the Robovan and once again predicted fully autonomous Tesla vehicles will hit the roads next year. However, analysts broadly were disappointed with the lack of details or specifics from the Tesla head.
Tesla also didn't show off an "affordable" model, a still-unseen EV that's supposed to start production in early 2025. That, along with a refreshed Model Y, is key to Tesla boosting or at least maintaining delivery levels next year.
Tesla reports third-quarter earnings and revenue on Oct. 23 with analyst consensus predicting quarterly profit falling around 11%. Tesla sales are expected to increase about 9% in Q3, according to FactSet.
Tesla stock ranks fourth in the 35-member IBD Auto Manufacturers industry group. The stock has a 47 Composite Rating out of a best-possible 99. Shares also have a 26 Relative Strength Rating and a 57 EPS Rating.
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