Tesla Stock Hit 8-Month Highs Friday; Cathie Wood Sold And Made Millions

Cathie Wood and her Ark Invest firm cashed in a portion of their Tesla (TSLA) stock holdings Friday with the EV giant hitting eight-month highs and up around 28% in June. Meanwhile, Tesla is ramping up end-of-quarter vehicle delivery incentives.

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Cathie Wood’s Ark Investment Management sold 73,113 shares of Tesla Friday for around $19.05 million, based on TSLA closing price of 260.54. Friday’s Tesla sell-off was done through ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW).

Tesla stock recorded two tiny losses and ended a record 13-day win streak last week. However, on Friday shares rose to a fresh eight-month high. TSLA is up more than 70% over the past seven weeks, but still well short — down around 17% — of September highs.

Cathie Wood has been buying up Tesla on the cheap throughout 2023 before selling big in recent days.

On June 12, Wood sold off more than 393,000 shares of Tesla for around $98.2 million, based on TSLA’s closing price of 249.83. Cathie Wood’s funds purchased more than 1.3 million TSLA shares so far in 2023 and have now sold around 730,000 shares.

Tesla stock jumped 2% to 265.65 early Tuesday during market trade.

Final Push For Vehicle Deliveries

Tesla increased discounts on U.S. inventory Model S and Model X vehicles by $2,500 late Friday. Consumers can now get $7,500 off the luxury models, after the EV company originally implemented a $5,000 price cut a few weeks ago.

Meanwhile, days after Tesla increased U.S. Model Y all-wheel drive prices by $250, the company now offers discounts of around $500 on some inventory vehicles.

Tesla also appears to be trying to move Model 3 inventory. Last week, the automaker began offering customers who order a Model 3 between June 14 and June 30 three months of unlimited free supercharging, according to the company’s website.

In China, Tesla is offering insurance subsidies on Model 3 vehicles. From June 16 to June 30, customers in China who buy and complete delivery of an in-inventory Model 3 rear-wheel drive vehicle will be eligible for an insurance subsidy of about $1,120, according CnEVPost.

In China last week, Tesla sold 14,500 vehicles, down 12% from the 16,400 vehicles sold in the previous week, according CnEVPost.

Through June 18, Tesla sold 40,600 vehicles in China, leading sales among “premium brands” in the country.

Courting Musk

India Prime Minister Narendra Modi is also expected to meet with Tesla Chief Executive Elon Musk this week in New York City as countries jockey for new Tesla manufacturing plants.

Last week, Musk held meetings with French President Emmanuel Macron and Italy’s Prime Minister Giorgia Meloni.

Reuters reported earlier this month TSLA is in talks to make an “automotive investment,” possibly a vehicle plant, in Valencia, Spain. Other reports circulated in June said Tesla has agreed in-principle with a plan to set up a manufacturing plant in India.

Neither Tesla nor Musk have confirmed any plans for a new manufacturing facility in Europe or India.

Tesla Stock

TSLA advanced 1.8% to 260.54 Friday. On Thursday, shares fell 0.35% to 255.90 after slipping 0.74% Wednesday, snapping a run of 13 straight gains. Shares are up around 140% in 2023 and nearly 28% in June. However, Tesla stock is down around 37% from the all-time high 414 it hit in November 2021.

TSLA jumped more than 6% last week despite two straight consecutive sessions with losses.

Tesla stock is well extended past a 207.79 buy point from what’s either a cup or a double-bottom base.

Shares are more than 30% above their 200-day/40-week moving average. That’s the most extended they’ve been since the stock marked its peak in November 2021.

Tesla ranks third in IBD’s automaker industry group. It has a 98 Composite Rating out of 99. Tesla stock has a 91  Relative Strength Rating and its EPS Rating is 93 out of 99.

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

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