Cathie Wood and Ark Invest have cut Tesla (TSLA) stock holdings in four consecutive trading sessions dating back to Friday with the next major catalyst for the stock likely to be if CEO Elon Musk does indeed remove "safety monitors" in its Model Y robotaxis in Austin, Texas, by the end of 2025. TSLA sank on Thursday.

On Wednesday, Wood's ARK Innovation (ARKK) ETF and ARK Next Gen Internet (ARKW) ETF sold a combined 70,474 TSLA shares for an estimated $30.35 million, according to Wood's ETF daily trade disclosures.

The comes after Wood's Ark Invest sold just 789 TSLA shares on Tuesday and cut 5,426 on Monday. Wood began her recent Tesla stock selling streak on Friday, Nov. 7, when she sold 71,38 shares.

As of Thursday, Tesla stock is the top holding in the ARK Innovation ETF, with an 11.96% weight. TSLA also ranks first in the ARK Next Gen Internet ETF with a weight of 9.69%. TSLA is the No. 1 holding across all of Ark's ETFs, at 9.94%.

Meanwhile, Elon Musk's brother, and a Tesla director, Kimbal Musk completed a stock transaction on Nov. 10, gifting 14,785 TSLA shares, according to a regulatory filing late Wednesday. Kimbal Musk has regularly sold his Tesla stock over the years, often near tops.

Wood is a major believer in Musk's vision for Tesla and its focus on autonomous ride hailing. Ark Invest forecasts Tesla stock to hit 2,600 by 2029. The firm has estimated that around 90% of Tesla's enterprise value and earnings will be attributed to the robotaxi business in 2029. Without a robotaxi network and business, Ark Invest wrote in 2024, the TSLA price target would be around 350 per share.

Wood's Ark Invest tends to purchase Tesla stock and other positions amid sell-offs or when they break below key moving averages.

Tesla Stock Performance

TSLA dropped as low as 396.42 intraday before ending Thursday's stock market down 6.6% to 401.99, retreating further below its 50-day moving average and moving to its lowest level since Sept. 12.

Tesla skidded 2% to 430.60 on Wednesday and ended Thursday's market down 12% in November. The stock is in a base with a traditional buy point of 470.75, but is now about 15% from that entry.

Recent investors could consider getting out, as it has triggered the 7%-8% sell rule. Investors who got in around 355-370 could at least consider taking partial profits.

Investors also could view the handle as a separate flat base, according to MarketSurge charts.

Shares briefly topped the 470.75 entry on Nov. 3, but didn't close above that key level.

On Monday, Tesla stock popped 3.7% to 445.23, just retaking the 21-day moving average, after falling 5.9% last week but bouncing off the 50-day line on Friday.

The bulk of Tesla's roughly $1.5 trillion valuation reflects optimism about self-driving, Optimus humanoid robots and more. On Nov. 6, Musk, after shareholders approved his $1 trillion pay package, reiterated his expectations that Austin robotaxis will be able to remove their safety monitors in a month or two.

Investors can also keep tabs on the Leaderboard, the IBD 50 list of top growth stocks and IBD SwingTrader along with the IBD Sector Leaders list.

Tesla stock has a 72 Composite Rating out of a best-possible 99. TSLA also has an 86 Relative Strength Rating and a 46 EPS Rating.

Please follow Kit Norton on X @KitNorton for more coverage.

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