Hedge Funds are Selling These 5 Cathie Wood Stocks

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1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 80

Decline in Hedge Fund Holders: 11

ARK Investment Management’s Stake Value: $1.71 billion

Percentage of ARK Investment Management’s Portfolio: 7.17%

Tesla, Inc. (NASDAQ:TSLA) is Cathie Wood’s largest Q1 holding, with 1.59 million shares priced at $1.71 billion. The investor trimmed her position in the EV maker by 18% over the previous quarter, and has reduced her Tesla stake for the last four quarters in a row. She owned 5.79 million shares of Tesla, Inc. (NASDAQ:TSLA) at the end of Q1 2021.

The professional investment world also reduced its exposure to Tesla, Inc. (NASDAQ:TSLA) at the end of the first quarter, where 80 hedge funds were long on the company shares, as compared to 91 hedge funds a quarter ago.

On May 24, Daiwa analyst Jairam Nathan kept an ‘Outperform’ rating on Tesla, Inc. (NASDAQ:TSLA) shares, and decreased the price target to $800 from $1,150. Owing to supply chain issues in China, and a weak macro outlook, shares of Tesla, Inc. (NASDAQ:TSLA) have plummeted 35.40% so far in 2022, as of June 2.

Tesla, Inc. (NASDAQ:TSLA) reported 80.54% growth in revenue for the first quarter, posting $18.76 billion which came in above market estimates by $917.8 million. Earnings per share were reported at $3.22, exceeding analysts’ forecasts by $0.95.

Baron Funds, an investment firm, mentioned the market position of Tesla, Inc. (NASDAQ:TSLA) in its Q1 2022 investor letter. Here’s what they said:

“During the first quarter, we bought back shares in Tesla, Inc., which designs, manufactures, and sells electric vehicles, solar products, energy storage solutions, and batteries. We believe that despite the run in the stock over the last few years, Tesla presents a favorable risk/reward profile and remains a Big Idea with only about 1% market share of the automotive market. Since we bought the stock during the first quarter, shares increased 27.1%, despite a complex supply-chain environment, on continued revenue growth and record profitability. Robust demand and operational optimization allow the company to offset inflationary pressures while vertical integration provides flexibility around supply bottlenecks. Moreover, we expect new localized manufacturing capacity to drive additional efficiencies while software initiatives, including the autonomous driving program, are accelerating, offering valuable optionality to the stock.”

You can also take a look at 10 Cheap Healthcare Stocks To Buy Now and 10 Best EV Stocks to Buy According to Cathie Wood.

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