Cathie Wood’s ARK Invest has been selling Tesla shares since last September decreasing its stake own their porfolio. Based on yesterday’s closing price, the exchange-traded funds paid $27.76 million for the 33,482 shares.
According to the official ARK document, ARKK (Innovation ETF) purchased 27,799 shares of Tesla, while the ARKW (Next Generation Internet ETF) bought 5,683 Tesla shares. After being locking profits since September, ARK bought Tesla’s dip after Earnings last Wednesday.
The head of Ark Investment Management is a longtime believer in Elon Musk’s company, and that’s not changing despite its recent drop.
“For us, we have been taking profits on the way up and receiving a lot of criticism for it, and for us this is nothing but a blip.”
Cathie Wood, November 10th, 2021
Yesterday, Tesla closed down 11.55% at $829.10 day after churning out a strong earnings report, but warning that supply chain issues could linger this year to cut into the EV juggernaut’s full growth potential.
ARK Invest has a 2025 $4,000 Price Target for Tesla as a Bull Case saying “there’s a 25% probability” for that case to happen. Also a 25% probability is given to the bear case indicating a $1,500 price target by that year, around $250 above Tesla’s All-time-high.
Last Wednesday, Tesla had its Earnings Conference and revealed a revenue growth of 65% Y/Y to $17.7B. The automaker reports it produced 305,840 vehicles in Q4 (+70% Y/Y) and delivered 308,650 vehicles (+71%).
Earnings: $2.54 per share, adjusted, vs. $2.33 per share as expected by analysts.
Revenue: $17.71 billion, vs. $17.1 billion as expected by analysts.
Automotive Gross Margin: 30.6%
“We aim to increase our production as quickly as we can, not only through ramping
production at new factories in Austin and Berlin, but also by maximizing output from our established factories in Fremont and Shanghai.” – Tesla said.
Revenue rose 65% year over year in the quarter, while net income, at $2.32 billion, was up some 760%, according to Tesla’s statement.
Yesterday, CFRA analyst Garrett Nelson raised the price target on Tesla to $1,300.00 from $1,250.00 while maintaining a Buy rating. The analyst said ’24 P/E of 90x, justified by TSA’s long-term earnings potential. They Earnings Per Share estimates by $1.35 to $10.40 this year, by $1.20 to $12.45 for 2023, and by $1.35 to $14.45 2024.
The company says they have successfully increased the number of FSD Beta vehicles from a couple of thousand in Q3 to nearly 60,000 vehicles in the US today.
“Our own factories have been running below capacity for several quarters as supply chain became the main limiting factor, which is likely to continue through 2022,” the company said.
Earlier this month, Tesla announced that deliveried 308,600 vehicles in Q4, setting a new record during the last Quarter. In 2021, Tesla delivered a total of 936,172 vehicles in 2021, crushing all the expectations.
During Q4 2020, the company delivered about 181,000 vehicles and Wall Street was looking for about 176,000 vehicles to be delivered at the time of the release. The result was about a 3% beat versus expectations. This quarter, Wall Street expectations were on 275,000 units, which means Tesla beat by more than 12%.