Tesla flashed a major sell signal on Friday. Cathy Wood ignored it.
Tesla ( TSLA ) closed off a hard sell on Friday, sending a sell signal to investors after the EV giant's Robotaxi event. However, Kathy Wood and her Arc Invest went ahead and bought about $3 million in TSLA shares to close last week. Tesla stock rose on Monday.
Cathy Wood's Arc Investment Management bought 12,730 TSLA shares on Friday, according to the company's daily trading disclosure. Based on the closing price of 217.80, Wood spent $2.77 million to purchase Tesla stock.
Wood's Tesla business is done through ARK is the next generation internet (ARKW). As of October 14, Tesla stock ranks third in ARKW with an 8.87% weight. Tesla stock traded up 8.8% to 217.80 on Friday, flashing a sell signal as shares decisively broke the 50-day moving average on heavy volume.
↑
X
Elon Musk's Robotaxis has arrived. Here's what investors need to know.
While Tesla stock fell on Friday, Uber Technologies ( UBER ) jumped 10.8%, moving above an 82.14 buy point.
'Toothless' Tesla Robotaxi Jumps Uber as 'Best-Case Outcome'
Shares of TSLA rose 0.6% to 219.10 during market action on Monday.
Wood, who has long been super-bullish on Tesla's autonomy push and robotaxi goals, attended Tesla's robotaxi event on Thursday. On June 12, Arc Invest updated its Tesla stock price target to 2,600 by 2029, estimating that roughly 90% of Tesla's enterprise value and earnings in 2029 will be attributed to the robotaxi business.
Wood's Arc Invest tends to buy Tesla stock and other positions during sell-offs or when they move below key moving averages.
Tesla stock last week
Tesla stock fell 12.9% to 217.81, its worst weekly loss since April. Friday's 8.8% tumble pushed Tesla decisively below its 50-day line on heavy volume. This is a significant Tesla sales signal. Recent buyers are probably sitting on losses. Long-term holders, who have a lower cost base, may choose to remain so.
Tesla Robotaxi Event: CyberCab, Robovan Unveiled; Musk sees self-driving 'next year'
Friday's sell-off follows the much-hyped Tesla Robotaxi event. CEO Elon Musk showed off the CyberCab with the RoboVan and once again predicted that fully autonomous Tesla cars will hit the roads next year. However, analysts were largely disappointed with the lack of details or specifics from the Tesla chief.
Tesla also didn't show an “affordable” model, an as-yet-unseen EV that is slated to begin production in early 2025. That, along with a refreshed Model Y, is key to Tesla increasing or at least maintaining delivery levels next year.
Tesla reported third-quarter earnings and revenue on Oct. 23, and analysts forecast quarterly profit to fall nearly 11%. According to FactSet, Tesla's sales are expected to grow about 9% in Q3.
Please follow Kit Norton on X @keatonnorton For more coverage.
You may also like:
Is Tesla stock buy or sell?
Get full access to IBD stock lists and ratings
Learning how to pick great stocks? Read Investor's Corner
AI is fueling a 'nuclear renaissance'. Bill Gates and Jeff Bezos are in the mix.
The bull is running; China offers new incentives
About The Author
