Investors at Ark might be kicking themselves this morning. The fund dumped 150,000 Tesla shares stock earlier this week (worth $39 million), just days before a 20% spike in share price.
All told, the firm would have made an extra $6 million if they’d held on until today’s opening bell.
Ark is perhaps Tesla’s biggest cheerleader, famously putting a $4,000 price target on the stock, and TSLA remains their highest-conviction play. But timing got the better of them this week, offloading shares right before Elon Musk’s best earnings report in a long time.
Tesla (NASDAQ: TSLA) is riding 18.9% higher in after-hours trading Thursday after smashing earnings expectations. Source: Google
Tesla earnings smash expectation
As CCN reported, Tesla came out fighting last night, beating Wall Street expectations with a surprise return to profitability. Tesla has managed only five quarter in the black since listing as a public company.
In addition to the strong numbers, Elon Musk doubled down on Model 3 delivery targets and put the Shanghai gigafactory and Model Y timeline ahead of schedule.
Musk also dismissed rumours of further funding rounds.
“We continue to believe our business has grown to the point of being self-funding.”
On the topic of progress at the Shanghai gigafactory, Musk said:
“We are already producing full vehicles on a trial basis, from body, to paint and to general assembly, at Gigafactory Shanghai. We have cleared initial milestones toward our manufacturing license and are working towards finalizing the license and meeting other governmental requirements before we begin ramping production and delivery of vehicles from Shanghai.”
Ark still bullish on TSLA
Despite offloading shares earlier this week, Ark was quick to reaffirm the fund’s long-term conviction on Tesla.