ARK Invest Continues Tesla Sell-Off as Market Awaits Delivery Figures

Cathie Wood's ARK Investment Management has executed another round of Tesla stock sales, according to the firm's latest trade disclosures. The move comes just days before the electric vehicle giant is scheduled to report its crucial fourth-quarter vehicle delivery numbers.

ARK sold approximately $20 million worth of Tesla shares across several of its flagship ETFs, including ARK Innovation (ARKK) and ARK Next Generation Internet (ARKW). This continues a pattern of trimming the firm's once-massive Tesla position throughout 2023, even as Wood maintains her long-term bullish price target of $2,000 per share.

Market Sentiment Appears Decoupled from Fundamentals

Analysts note a growing disconnect between Tesla's operational performance and its stock price action. Despite expectations for record Q4 deliveries—with consensus estimates hovering around 480,000 vehicles—Tesla's shares have been under pressure, falling over 5% in the past week alone.

"The market seems to be focusing on macro concerns, rising competition, and margin compression rather than pure delivery numbers," said James Wang, an auto sector analyst at Bernstein. "Even a beat on deliveries might not provide the catalyst investors are hoping for unless accompanied by strong commentary on demand and profitability."

  • ARK has sold over $200 million in Tesla stock in Q4 2023 alone.
  • Wall Street delivery estimates range from 475,000 to 485,000 vehicles for the quarter.
  • Tesla's stock is down roughly 25% from its 2023 high in July.

The upcoming delivery report, expected in early January, will be scrutinized for signs of demand sustainability after a year of aggressive price cuts. However, with investor attention shifting to 2024 growth rates and the Cybertruck's ramp-up, a simple delivery beat may no longer be enough to move the needle.