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Investor's Corner

Tesla shares dumped by ARK to regulate portfolio following stock surge

(Credit: Tesla)

Tesla shares (NASDAQ: TSLA) shares were dumped across three ETFs by ARK Invest as revealed on Monday evening after the automaker’s stock surge over the past 12 days made the firm regulate its holdings.

ARK Invest sold nearly 400,000 shares from three ETFs, including 234,551 from ARKK, 31,466 from ARKQ, and 37,045 from ARKW.

ARKK is the firm’s Innovation fund, while ARKQ deals with Autonomous Technology and Robots. ARKW is labeled as Next Generation Internet.

The sales of Tesla shares bring in over $98 million based on Monday’s closing price of $249.83.

Many people take massive sales by ARK, like this one, completely out of context and sometimes try to spin it as a negative. ARK is arguably the most bullish firm on Wall Street when it comes to Tesla, predicting massive gains in the future, which mostly lean on the company’s potential Robotaxi fleet.

The move actually helps regulate ARK’s funds, as big surges like this can bring the concentration of certain holdings to levels that are too high. ARK has the intention of not letting a single stock become an overwhelming portion of an ETF, as it can bring too much influence and make one become dependent on a single stock.

Large surges like this have often cumulated in sales of certain shares, and it does not only have to do with Tesla. The firm sells any stock when it has a big run-up, like Tesla has over the past few weeks.

Tesla shares have been subject of a huge surge on Wall Street as the automaker continues to pump out bullish news, mostly dealing with its recent deals with Ford and GM, both of which will adopt the company’s North American Charging Standard (NACS).

Other companies have followed suit, and it seems that things are moving forward for the NACS connector to become a standard.

Tesla shares are up over 53 percent in the past month, and are currently trading north of $255, at 11:46 AM on the East Coast.

Disclosure: Joey Klender is a TSLA Shareholder.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Tesla shares dumped by ARK to regulate portfolio following stock surge
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