Source: Sina US stocks

Since entering October, Cathy Wood's Ark Investment Management Company has been sold off for two consecutive weeks$Tesla (TSLA.US)$The stock, despite being affected by fundamentals and macroeconomic concerns, continued to fluctuate in a narrow range last week.

Following the sale of Tesla shares worth over 30 million US dollars in the first week of October, Wood's fund also sold the company's shares worth more than 20 million US dollars last week. Of these, 31,418 shares worth about 8.28 million US dollars were sold on Tuesday, 37,268 shares worth 9.08 million US dollars, and 13,188 shares worth 3.31 million US dollars on Friday.

Wood's company has been selling Tesla shares intermittently since mid-June. However, Tesla remains ARK's most heavily traded stock, accounting for 10.46% of the fund's portfolio.

In a recent interview, Wood reiterated his optimism about Tesla and set the stock's target price for 2027 at $2,000. Much of this bullishness is based on the company's unlaunched autonomous taxi service. Wood also said earlier that her fund's sale of Tesla shares is a routine position adjustment that allows the company to invest profits into other disruptive and innovative companies.

Tesla will announce its third-quarter results after the market closes on Wednesday EST. Currently, analysts on average expect the company to report earnings of $0.74 per share, down from $1.04 per share in the same period last year. However, they think the company's revenue could increase by about 10% year over year to US$24.16 billion.

Analysts are worried that the company's profit margins will erode as Tesla insisted on price reduction adjustments through discounts and direct price cuts during the quarter.

Morgan Stanley analyst Adam Jonas said last week that he expects Tesla's gross margin to fall to 17.5% in the third quarter, down from 18.1% in the second quarter and 19% in the first quarter.

edit/lambor