Tesla Inc ((NASDAQ:(TSLA))) bull Cathie Wood-led Ark Invest sold some of the shares in the electric vehicle maker months after setting a steep price target on the stock as the investment management firm re-balances its portfolio.
The popular investment firm sold 63,643 shares, estimated to be worth about $43.7 million, in the Elon Musk-led company on a day Wood said Tesla will follow Apple Inc (NASDAQ:AAPL) in capturing the lion’s share of the sector’s profits.
“We believe that the reason there’s such a big inefficiency in Tesla‘s valuation is the short-term time horizon of analysts and the wrong analysts following it,” Woods said, as per the report.
The popular investment firm, which counts Tesla as its biggest holding, had in March said the stock will hit $3,000 at the end of 2025.
Tesla stock closed 1.45% higher at $687.20 a share on Friday.
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The New York-based investment firm had on Monday deployed the Ark Innovation ETF (NYSE:ARKK) to sell the shares in Tesla and also holds the stock via two other traded funds, namely, the Ark Autonomous Technology & Robotics ETF ((BA)TS:ARKQ) and the Ark Next Generation Internet ETF (NYSE:ARKW).
Ark Invest last sold shares in Tesla in April when shares of the company were trading around $719 a piece.
All three Ark ETFs count Tesla among their largest positions and together held 4.9 million shares, worth $3.34 billion, ahead of Friday’s trades.
The popular investment firm also scooped over 1.85 million shares, estimated to be worth about $65.2 million, in Robinhood Markets Inc (NASDAQ:HOOD) as the shares of the company staged a recovery and closed higher just a day after a dismal debut.
See Also: Cathie Wood Snaps Up $45M In Robinhood On Debut, Adds $73M In Twitter
Robinhood shares closed 0.95% higher at $35.15 on Friday, a day after losing over 8% on its trading debut.
Ark deployed ARKK, ARKW and the Ark Fintech Innovation ETF (NYSE:ARKF) to buy the shares in Robinhood and the three ETFs held 4.6 million shares, worth $160.5 million, in Robinhood Markets.