Cathie Wood’s Ark Invest Sells $110 Million In Tesla Stock As Insiders Also Dump Shares

Though Wood is a big fan of Tesla, Wall Street doesn’t have the same high hopes. According to Bloomberg data, the average analyst price prediction for Tesla stock is $701, implying a drop of 8% in the next year.

According to Wood, Ark likes to trade around Tesla’s excessive volatility, taking advantage of low prices to buy and sell when she thinks prices are about to take a fall. “We naturally just take profits when we feel like analysts are hyperventilating about a stock—including Tesla—because we know we’ll get another opportunity connected with controversy to purchase the stock lower,” Wood said after a wave of selling last year. Despite the latest transactions, Tesla still accounts for about 11% of Ark’s flagship fund, which owns 3.1 million shares worth $2.3 billion and has significant investments in Coinbase, Zoom Video Communications, and Spotify.

On Wednesday, Ark sold shares in chipmakers Nvidia and NXP Semiconductors while buying shares in software company UiPath, real estate website Zillow, and eCommerce companies Etsy and JD.com.