Tesla (NASDAQ:TSLA) stock is falling slightly in early trading after a well-known investor, Cathie Wood, sold a significant amount of the automaker’s stock on strength yesterday.
Yesterday’s rebound came after Elon Musk’s electric vehicle (EV) firm reported lower-than-expected deliveries that nonetheless may have triggered some short covering in TSLA stock. Meanwhile, Tesla launched a cheaper version of its popular Model Y SUV in the U.S. this week.
Wood Sells TSLA Stock
Ark Investment Management, a company controlled by Cathie Wood, unloaded roughly $25.5 million of TSLA stock yesterday. Three of Wood’s ETFs sold shares of the automaker: RK Innovation ETF (NYSEARCA:ARKK), ARK Next Generation Internet ETF (NYSEARCA:ARKW) and ARK Autonomous Tech ETF (BATS:ARKQ). All three funds are in the red this morning.
However, Tesla remains Wood’s top holding, accounting for 7.87% of her funds’ assets.
Deliveries and New Versions of the Model Y
On Monday, Tesla reported that it had delivered 430,000 EVs last quarter, about 25,000 below analysts’ mean estimate. However, according to Barron’s, the number of deliveries may have surpassed bears’ expectations and, as a result, triggered short covering in the name.
The shares of the company saw a rise in the first three days of the week, which several factors may have influenced. The company took responsibility for the miss and attributed it to technical factors at its factory. It also reiterated its 2023 target of 1.8 million deliveries, which could have boosted investor confidence. Moreover, the bond rally yesterday is also likely to have contributed to the rise in the TSLA stock.
Tesla has begun offering a new version of the Model Y, which starts at $44,000, nearly $4,000 less than its predecessor. Additionally, the EV qualifies for the $7,5000 federal tax credit.
Shares of TSLA stock are up 5.5% in the last five days and 3.4% in the last month, while they have soared 111% so far in 2023.
As of this writing, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
