Source: Sina Finance
Cathy Wood's Ark Investment Management Company is$Tesla (TSLA.US)$The sell-off of this stock continued on the eve of the release of the third-quarter earnings report. After selling stocks worth over $50 million in the previous two weeks, holdings were further reduced for two consecutive days on Monday and Tuesday.
The company sold 7,759 Tesla shares on Monday and 26,248 shares on Tuesday. At Tuesday's closing price of $254.85, these shares are worth about $8.67 million.
Wood's company has been selling Tesla shares intermittently since mid-June. However, Tesla is still the fund's most heavily owned stock.
Wood also said earlier that her fund's sale of Tesla shares is a routine position adjustment that allows the company to invest profits into other disruptive and innovative companies.
In an interview on Monday, Wood reiterated her bullish stance on Tesla, saying that in the next 5 years, Tesla will be better$NVIDIA (NVDA.US)$There is more room for development, and it is anticipated that with the development of autonomous driving technology in the future, the company's profit margin may expand from around 20% to 60% or even 70%.
Wood also reaffirmed her confidence in Tesla CEO Elon Musk, who is an outstanding leader and innovator who will lead Tesla through any difficulties.
Wood said, “Difficult times have inspired Elon's creativity. He's a problem solver and a brilliant technical expert. We think every time he does face chaos, the strength of his brain cells will allow him to find new answers.”
Wood also said that now that Musk has control over the scalability of electric vehicles, the billionaire is “really focused” on solving the rest of the autonomous driving equation. Wood said that for Tesla, the final software upgrade and then expansion into the ride-hailing service sector will be a “game-changing” process.
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.
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