A major Tesla shareholder cut its stock holdings in four consecutive trading sessions this month, according to Investor’s Business Daily.
A large chunk of Tesla’s fortunes likely hinges on its Robotaxis as it prepares to remove safety monitors in Austin, Texas, and expand service.
On Nov. 12, ARK Innovation and ARK Next Gen Internet — managed by the firm Ark Invest — offloaded nearly 70,500 Tesla shares worth approximately $30.35 million, according to Ark Invest CEO Cathie Wood‘s daily trade disclosures of exchange-traded funds.
The following day, Tesla’s stock ended down 6.6% at 401.99, falling to its lowest level since Sept. 12 — continuing a rollercoaster year on the market for the electric vehicle maker.
Even though Ark Invest sold Tesla shares for multiple trading sessions in a row, Investor’s Business Daily reported that the management firm remains high on the company’s prospects, particularly its autonomous Robotaxi service. Ark Invest expects Tesla’s stock price to hit $2,600 by 2029, assuming Tesla CEO Elon Musk’s Robotaxi vision comes to fruition.
The Robotaxi rollout in Austin didn’t go as planned. First, Tesla delayed the tentative launch date — a move Musk said was to ensure public safety. Yet when the invite-only service began, disturbing footage surfaced of the autonomous Robotaxis experiencing navigation issues and other malfunctions that required safety monitors to intervene.
While shareholders appear to be all-in on Musk’s “Master Plan” to make Tesla a leader in robotics and artificial intelligence, given that they approved his unprecedented $1 trillion pay package, Musk’s infectious optimism has frequently amounted to little more than broken promises.
According to Investor’s Business Daily, Ark Invest estimated that Tesla’s price target per share would be a mere $350 if Tesla’s Robotaxi endeavor stalls. By 2029, it expects Robotaxi to account for 90% of Tesla’s enterprise value and earnings if its stock is to reach new heights.
Tesla’s sales numbers have largely slumped this year, yet the company continued to make its mark in the global market amid increased competition from up-and-coming EV makers such as BYD.
In September, the Model Y and Model 3 were the world’s top-selling EVs. Despite the sell-off, the Ark Innovation ETF also lists Tesla as its top holding with a 12.1% weight as of Nov. 19.
Ultimately, the coming months appear to be a critical window to shore up investor trust. Musk hopes to remove safety monitors from Robotaxis in Austin by the end of the year, as reported by The Verge. Tesla has also made progress on plans to launch Robotaxi in other U.S. cities.
Yet continued delays or reported safety issues could damage brand trust — and, more broadly, make consumers wary of exploring their EV options, setting back progress toward adopting cleaner, more cost-effective modes of transportation.
However, if you’re interested in driving a zero-tailpipe-pollution vehicle that will save you hundreds on gas and maintenance, a diversified EV market also means you have plenty of brands to choose from. If a Tesla is right for you but the idea of its autonomous features makes you uneasy, you can decline to use its supervised Full Self-Driving technology.
Meanwhile, Qmerit offers free, quick installation estimates for Level 2 chargers that can enhance your savings and make charging your EV even more comfortable and convenient.
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