Billionaire investor Cathie Wood trimmed her position in Tesla Inc (NASDAQ: TSLA) by roughly $270 million on Wednesday as the rate-sensitive tech stocks took a hit amidst the bond sell-off.
Wood sold 340,000 Tesla shares
Wood’s Ark Investment Management used three of its ETFs to sell over 340,000 Tesla shares. The electric car manufacturer still makes up close to 11% of the firm’s flagship ARK Innovation ETF (ARKK),
The bond sell-off that weighed on rate-sensitive stocks had ARKK see its worst day in months on Tuesday. The ETF is down more than 5.0% since last Thursday and close to 30% down from its year-to-date high in February.
ARK Innovation’s four-day outflow topped $660 million this week as investors pulled out $297 million on Monday from the ETF that focuses primarily on growth stocks. It was the largest withdrawal from ARKK since March 2021.
Tesla is still ARKK’s largest holding
Tesla Inc is still the largest holding in Wood’s flagship ETF. She is convinced that shares of Elon Musk’s company will hit $3,000 next year but still prefers to trim her position in Tesla after a period of outperformance.
She also cuts her stake when Tesla Inc makes up more than 10% of ARKK.
The news comes only days after Goldman Sachs upgraded Tesla Inc to outperform, citing the EV maker’s resilience amidst the ongoing supply chain constraints. Shares of Tesla Inc are up nearly 5.0% since last Thursday and about 7.0% on a year-to-date basis.
The post Here’s what Cathie Wood did to her stake in Tesla amidst the bond sell-off appeared first on Invezz.
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