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Cathie Wood Dumps $30 Million Worth of Tesla Stock Amid China Sales Slump, Loads up Circle and This Hot Chinese AI Stock

Tiger Newspress11-13

On Wednesday, Cathie Wood-led Ark Invest executed significant trades involving CircleAlibaba Group, and Tesla. These trades reflect Ark’s strategic positioning in the market, with notable buys in Circle and Alibaba, and a sell-off in Tesla.

The TSLA Trade: 

Ark Invest reduced its holdings in Tesla by selling 70,474 shares through ARK Innovation ETF and ARK Next Generation Internet ETF. Tesla’s stock closed at $430.60 on Wednesday, marking a 2.05% decline. The trade is valued at approximately $30.3 million.

This move comes amid reports of Tesla’s declining sales in China, where October deliveries fell by 36% year-over-year to 26,000 units. Year-to-date deliveries are down roughly 40,000 vehicles, putting the company at risk of its first annual decline in the market. Including exports, total deliveries from Tesla's Shanghai factory dropped 9.9% to 61,497 vehicles.

Notably, Ark dumped $2.4 million worth of Tesla shares on Monday. The firm also sold 789 shares of the Elon Musk-headed automaker on Tuesday.

The Circle Trade

Ark Invest made a substantial purchase of Circle shares, acquiring 245,830 shares via the ARKK ETF and 70,613 shares through ARKW. Circle’s stock closed at $86.30, down 12.21% on Wednesday, valuing the transaction at approximately $30.5 million.

Despite the USDC issuer’s impressive 202% profit surge in the third quarter, the stock’s decline suggests investor skepticism about its long-term growth potential. Circle’s third-quarter net income reached $214 million, with total revenue and reserve income increasing by 66% to $740 million.

The Alibaba Trade

Ark Invest also increased its stake in Alibaba, purchasing 4,878 shares via ARKK, 364 shares through ARK Fintech Innovation ETF, and 1,396 shares with ARKW. Alibaba’s stock closed at $157.91, down 1.8% on Wednesday, with the trade valued at approximately $1.05 million.

The Jack Ma-founded company continues to attract investors with its focus on artificial intelligence, cloud infrastructure, and instant-commerce delivery. The stock has surged 98% year-to-date, despite potential risks from U.S. restrictions on advanced AI chips.

On Tuesday, Ark Invest had purchased $25.36 million worth of Alibaba shares.

Other Key Trades

  • Sold 205,524 shares of Iridium Communications Inc through ARKK, 53,954 shares through AKRQ and 15,897 shares via ARKX.

  • Sold 43,940 shares of SoFi Technologies Inc via ARKF.

  • Purchased 50,084 shares of Twist Bioscience Corp through ARKK.

  • Sold 84,515 shares of Exact Sciences Corp via ARKK.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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Comment4

  • Guavaxf30
    ·11-13
    Take also into account how Waymo is winning the Robotaxi war in the US whilst at the same time Tesla showing a PE of above $200 versus Alphabet's (Waymo), $20.  Add also the confirmed failure of Cybertruck, and the continued loss of market shares of Tesla EV's.  Where is the logic supporting Tesla's $400 plus share price?
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  • NatMeg
    ·11-13
    🤣😆 you guys are part of the media spin
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  • Who is Cathie wood 
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  • Kerop
    ·11-13
    She said everyone should buy Tesla stocks long term on Diary of a CEO only a few months ago. Now she's selling them off. So hypocritical.
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