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Tesla's vocal investor sells more than $39m of stock ahead of company's earnings report

By Yana Berman

ARK Investment Management trims its stake by 150K shares

ARK Investment Management, one of the most vocal backers of Tesla, has sold more than 150,000 shares ahead of the company's monthly report, Business Insider reported.

The sales were voluntarily disclosed by ARK. According to the company's intraday trading data, since October 1 it has sold Tesla shares worth around $39m (£30m, E35m). The company's price target for the shares is $6,000.

According to Ren Leggi, lead portfolio manager at ARK, the sales are related to overall trading strategies and the company will still support Tesla.

ARK is a relatively small holder of Tesla stock, owning a stake of 0.65 per cent. By the end of the second quarter it was only the 21st largest shareholder. However, its support for the electric car manufacturer and its noticeable price target makes ARK one of the most vocal investors.

Tesla, whose chief executive is Elon Musk, will still remain the top holding in the company's portfolio, forming around 10 per cent of ARK's investments.

Tesla’s stock is down 23 per cent since the beginning of 2019. The company is set to release its third quarter report on Wednesday October 23.

In the second quarter, the electric car manufacturer reported “record” deliveries of 95,200 cars. The total number of vehicles produced during the quarter surpassed 87,000. However, the company also revealed a wider-than-expected loss and disappointing revenue, along with the departure of its chief technology officer JB Straubel.

Following that earnings report, its stock fell 13.6pc on the worst day for the company in 2019.

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