Cathie Wood Backs Elon Musk’s Stock Sales, Says Tesla Selloff ‘Nothing but a Blip,’ Wouldn’t Buy Rivian at Current Levels

By Benzinga
Benzinga
Benzinga
November 12, 2021 Updated: November 12, 2021

Tesla Inc. bull Cathie Wood on Wednesday reiterated her $3,000 price target for the electric vehicle stock for 2025, dubbing the the recent selloff as “nothing but a blip” and said wouldn’t buy just-listed Rivian Autoimotive Inc.

What Happened

Tesla shares have retreated 13.4 percent in the past five days after CEO Elon Musk’s Twitter poll over the weekend to check if he should sell 10 percent of his stake worth billions in the company.

Wood’s money managing firm Ark Invest counts Tesla as its largest holding and owns shares worth billions in the company via its exchange traded funds.

Tesla shares pared losses on Wednesday after the intense selloff earlier in the week.

SEC filings from late Wednesday revealed that Musk has sold $4.83 billion worth of the automaker’s shares this week as part of a plan that was set in motion a couple of months in advance.

Wood backed Tesla CEO Musk’s decision to sell and said he has enormous tax bills related to stock options.

“I am sure he didn’t want to use any more of his stock as collateral for loans so I think that’s sensible,” Wood told Bloomberg at the Dynasty Financial Partners’ 2021 Investments Forum held at Nashville, Tennessee.

Ark Invest Not Buying Tesla on the Dip

Wood’s investment firm Ark Invest appears to have paused selling shares in Tesla on the latest dip. Ark has been booking profit in the stock since early September when shares of the company began an upward march.

“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.” Wood told Bloomberg.

Ark Invest last sold Tesla shares on Oct. 29.

Besides being a Tesla bull, Wood is an electric vehicle proponent and expects the average EV prices to come down significantly in the coming years.

Not A Rivian Bull?

Ark Invest’s daily trade data reveals it has not bought any stake in Rivian after it made a blockbuster Nasdaq debut on Wednesday.

Wood had reportedly at the same Dynasty event on Wednesday said she won’t be buying Rivian at the current valuation.

Price Action

Tesla shares closed 0.42 percent lower at $1,063.51 a share on Thursday. Rivian shares closed 22.1 percent higher at $122.99 on Thurday.

By Rachit Vats

© 2021 The Epoch Times. The Epoch Times does not provide investment advice. All rights reserved.

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