Cathie Wood’s ARK Invest dumped $7.3 million of Tesla stock after Goldman Sachs hit the EV maker with its fourth share downgrade of the month earlier this week.
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On Wednesday, ARK’s daily trade notifications show two of the firm’s exchange-traded funds offloaded a total of 28,368 Tesla shares, with the Autonomous Technology & Robotics ETF selling 17,967 of those shares and the Next Generation Internet ETF letting go of 10,401.
ARK funds have now sold over a half million Tesla shares in June, while ARK’s technology ETF gobbled up 4,576 shares of Advanced Micro Devices worth over $500,000 based on the day’s $110.17 closing price.
Last week, Morgan Stanley and Barclays analysts cut the Elon Musk-run company’s stock to equal weight.
Even with the analysts’ reductions, Tesla’s price target was moved to $248 per share from $185, showing an increase in earnings-per-share estimates and a higher target multiple.
Despite Goldman Sachs’ recent downgrade, the bank said it remains positive about Tesla’s long-term growth potential and competitive positioning, while the 108% rally since Jan. 1, reflects the firm’s bullish stance.
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Tesla shares have fallen the last five days, after a recent winning streak of 13 consecutive trading days on Wall Street and a rough 23% pop in stock value the last 30 days.
Goldman Sachs pinned much of its downgrade on valuation, while also highlighting the difficult pricing environment for new EV vehicles.
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According to analysts, the pricing issue for EVs will hurt Tesla’s non-GAAP gross margin in 2023.