Tesla Inc (NASDAQ:TSLA) shares fell again ahead of Tuesday trading after Cathie Wood’s investment firm ARK sold more of its stake in the electric vehicle maker.
ARK first piled into Tesla in 2016 and its subsequent stratospheric climb made Wood's name as a stock picker, since when the ETF specialist has dipped in and out on a regular basis.
Wood, who also has garnered a reputation for big tech bets on companies often out of favour, has made handsome gains from her dealings in the electric vehicle group this year.
ARK Invest sold 8,254 Tesla shares worth around US$2mln (£1.6mln) on Monday, having unloaded over 500,000 of the shares throughout June.
Around 5,196 and 3,058 Tesla shares were sold from the ARK Autonomous Technology & Robotics and ARK Next Generation Internet exchange-traded funds respectively.
Earlier in the year ARK was a big buyer when worries over China sales, price competition and Elon Musk selling shares to pay for his Twitter deal had sent the share price tumbling as low as US$109.
Now US$244 on a recovering outlook, rivals joining its charging network and a better outlook in China, Wood had decided its time to bank some of those gains even though she predicted as recently as last month the price of Tesla might hit US$2,000 by 2027.
Several analysts have recently downgraded their rating on the EV group, with those at Goldman Sachs the latest, moving from a ‘buy’ to a ‘neutral’ stance.
At ARK, Wood's current bet is on chip makers Advanced Micro Devices Inc. (NASDAQ:AMD) and Taiwan Semiconductor, investments made following a bold move to take profits on NVIDIA Corporation (NASDAQ:NVDA), the market's current hot tech stock.