While Tesla and ARKK have had a significant positive correlation in the past 5 years, they have lost it 20 days ago!
This is very unusual for ARKK to be negative when tesla is positive..!
It could be because ARK selling its stakes in Tesla:
According to Ark's daily transaction reports, three of the firm's funds, including its flagship Ark Innovation ETF, sold a combined 142,708 shares of Tesla on Wednesday, representing a stake worth about $108 million and adding to separate sales of about $166 million since late July.
The newest transactions come just days after Wood touted Tesla's success and gave shares a price target of $3,000 (nearly 300% more than current levels) in an interview with Yahoo! Finance, saying the company's growing market share makes it poised to benefit from a nearly 18-fold increase in electric-vehicle sales by 2025.
It seems she does not believe in her own analysis!
https://www.forbes.com/sites/jonathanponciano/2021/09/09/cathie-woods-ark-invest-sells-110-million-in-tesla-stock-as-insiders-also-dump-shares/?sh=30c2cc68ed57
This is very unusual for ARKK to be negative when tesla is positive..!
It could be because ARK selling its stakes in Tesla:
According to Ark's daily transaction reports, three of the firm's funds, including its flagship Ark Innovation ETF, sold a combined 142,708 shares of Tesla on Wednesday, representing a stake worth about $108 million and adding to separate sales of about $166 million since late July.
The newest transactions come just days after Wood touted Tesla's success and gave shares a price target of $3,000 (nearly 300% more than current levels) in an interview with Yahoo! Finance, saying the company's growing market share makes it poised to benefit from a nearly 18-fold increase in electric-vehicle sales by 2025.
It seems she does not believe in her own analysis!
https://www.forbes.com/sites/jonathanponciano/2021/09/09/cathie-woods-ark-invest-sells-110-million-in-tesla-stock-as-insiders-also-dump-shares/?sh=30c2cc68ed57
Tesla bull backs off
A once big-time Tesla investor, Chamath Palihapitiya has pulled his position in the electric vehicle maker over the past year, cashing out his massive stake in the company to invest capital in other areas. The Social Capital founder said:
I don’t have an infinite pool of capital. So when I have these ideas, the money has to come from somewhere.
The billionaire is still bullish on Tesla stock, but has admitted that he underestimated how big the electric vehicle market could get.