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Cathie Wood Sells a Few Tesla Shares; Buys Teladoc Instead

Story Highlights

Cathie Wood’s ARK fund, which also holds Twitter stock, sold some of its shares in Tesla and bought shares in a virtual healthcare company. Tesla stock remains popular in Wood’s portfolio, while TipRanks’ best-performing portfolios are also bullish on the stock.

Cathie Wood’s ARK Next Generation Internet ETF (ARKW) recently sold some of its shares in Tesla stock (TSLA). The fund’s trades show that it bought Teladoc Health stock (TDOC) on the same day it cut exposure to Tesla.

Elon Musk-led Tesla makes electric vehicles. It also sells solar panels and solar power storage products. Tesla sits among the top-performing EV stocks by yearly gains on TipRanks. Conversely, Teladoc provides telehealth solutions, such as enabling doctors to connect with patients remotely.

Cathie Wood’s Tesla Stock Trade Details

The ARKW fund sold 898 Tesla shares on August 17. That same day, the fund purchased 32,351 shares of Teladoc. On August 11, the fund also sold some 141 Twitter (TWTR) shares and immediately bought 10,376 Teladoc shares. 

Even after the sale, Tesla stock remains ARKW ETF’s largest holding at 8.67% of the fund’s portfolio weight. Tesla is also the top holding at Wood’s flagship fund ARK Innovation ETF (ARKK), representing 9.54% of the portfolio.

Is Tesla A Buy or Sell?

While Tesla stock is still down about 24% year-to-date, it has continued to recover from the recent stock market slump, with gains of 24% in the past month. Wall Street professionals are bullish on the EV stock, as Tesla has a Moderate Buy consensus rating based on 18 Buys, five Holds, and six Sells assigned in the past three months. The average TSLA price target of $921.59 implies 4.7% upside potential.

Conclusion – Kathy Wood Remains Bullish on TSLA Stock

ARKW ETF recently dropped some Tesla shares. However, that doesn’t seem to hint that the fund is souring on Tesla stock. Instead, the sale seems to have created some space for Teladoc stock. Wood remains highly bullish on Tesla, considering that the stock remains the top holding at several ARK funds. 

Indeed, Tesla stock is also a favorite of some of the smartest retail portfolios. TipRanks’ Stock Investors tool shows that investor sentiment is currently Very Positive on TSLA stock. Over the past 30 days, 7.9% of the best-performing portfolios tracked by TipRanks increased their exposure to Tesla.

Disclosure

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