Cybertruck rally triggers Cathie Wood Tesla stock dump ahead of Q2 earnings

Cathie Wood and her company Ark Invest have sold another slice of their You’re here (TSLA) shares held on Monday, unloading more than 45,000 shares, as the electric vehicle giant rallied on news surrounding the highly anticipated Cybertruck. The decision to sell also comes two days before Tesla releases its second-quarter financial statements.


Cathie Wood’s ARK Investment Management sold 45,184 shares of Tesla on Monday for about $13.12 million, based on the TSLA closing price of 290.38, according to the company’s Daily Trading Disclosure. Monday’s Tesla stock sale went ahead ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW).

After tanking Tesla stock in early 2023 and seeing stocks hit 10-month highs, Cathie Wood has been selling Tesla stock in recent weeks.

Last week, Wood sold 20,874 Tesla shares for about $5.7 million. Since June 12, Cathie Wood has sold more than 700,000 Tesla shares. Prior to that, Wood’s ARK company had purchased over 1.3 million shares of TSLA.

As of July 18, Tesla was the top holding in ETF ARK Innovation with a weighting of 11.26%. TSLA is currently fifth in ETF ARK Next Generation Internet, with a weighting of 6.60%. Tesla also ranks first for ETF ARK on autonomous technology and robotics (ARKQ), with a weight of 14.98%.

Tesla stock edged down 0.7% to 288.34 on Tuesday in market trades.

Cybertruck boosts Tesla shares

Over the weekend, just four days before the results, Tesla tweeted a photo of the first Tesla Cybertruck made at its Austin factory. Tesla stock responded on Monday, jumping 3.2% to 290.38.

TSLA rose 2.5% last week to 281.38. TSLA stock is up 128% in 2023. The stock is working a buy point of 313.80 after deep consolidation dating back to late September, according to MarketSmith analysis.

Meanwhile, the EV company releases its second-quarter financials late Wednesday, with analysts focusing on profit margins. Wall Street expects earnings to rise about 4% to 80 cents per share with revenue totaling $24.22 billion, up 43% from a year ago. Tesla’s factory in Shanghai was closed for several weeks in the second quarter of 2022 due to Covid lockdowns.

Cybertruck: margins, margins, margins

Investors will be tuned in for information on an upcoming updated Model 3. Analysts will also seek information on a future Mexican factory, which will manufacture Tesla’s next-generation model. Musk hinted at the next-gen model, but no more than that.

And, of course, investors will want to know more about when the Tesla Cybertruck will begin production and meaningful deliveries.

Morgan Stanley analyst Adam Jonas wrote on Tuesday “now that the first Cybertruck has rolled off the line in Texas, the fun can begin.”

“Investors will be listening for any potential information on the new release during the earnings call on Wednesday,” Jonas said.

TSLA reported record global shipments in early July – as price cuts, tax credits and rebates propelled demand well above Wall Street forecasts.

Tesla deliveries were 466,140 in the second quarter, topping the first quarter record of 422,875 and the fourth quarter record of 405,278. Model 3 and Model Y deliveries reached 446,915 in the second quarter. Model S and X deliveries reached 19,225. Production hit 479,700, again topping deliveries, even with Tesla limiting production below capacity.

In the first quarter, Tesla’s profit margins fell below 20% as the company implemented an aggressive price reduction strategy during the first part of 2023. Rebates and incentives continued in the second quarter and now in July.

The electric vehicle company’s total gross profit was $4.5 billion, with Tesla’s gross profit margin of 19.3%, down from 23.8% in the fourth quarter and 29.1% a year earlier.

Tesla stock ranks third in IBD’s automaker industry group. He has a composite rating of 98 out of 99. Tesla has a relative strength rating of 96 and his EPS rating is 93 out of 99.

Please follow Kit Norton on Twitter @KitNorton for more coverage.


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