Investor Gary Black, managing director of the Future Fund LLC, has said that Tesla Inc. (NASDAQ:TSLA) shares are falling due to weak EV demand and Cathie Wood-led ARK Invest's trades.
Weak EV Demand In Europe And China
Taking to the social media platform X on Thursday, the investor shared his thoughts on the Tesla stock decline. "Analysts are cutting short- and long-term earnings estimates due to weak TSLA EV demand in China/Europe," Black said.
He added that the "Robotaxi and Optimus earnings" were still some time away for the EV giant. "ARKK sales aren't helping," the investor added.
It's worth noting that Tesla recorded a three-year low in China during October, selling over 26,000 units in the country. The company, including exports, delivered 61,497 units of the Model Y and Model 3, a 9.9% decline.
Tesla sales also fell in Europe, as data illustrated that the company's sales in multiple key European countries were down 36.3% year-over-year in October. Tesla also recorded a 10.5% decline in European sales during September.
Cathie Wood Dumps $32 Million Worth Of Tesla Shares
The news comes as ARK dropped over 70,474 shares of the EV giant through two of its ETFs, the ARK Innovation ETF (BATS:ARKK) and ARK Next Generation Internet ETF (BATS:ARKW). The trade is valued at close to $30.3 million. ARK had also dumped over $2.4 million worth of the company's stock earlier this week, as it sold 5,426 shares of Tesla through the same ETFs.
Despite these trades, Tesla remains ARKK’s top holding, with a 12.03% weightage in the ETF’s portfolio valued at $849.4 million. ARKK’s other two top holdings comprise Roku Inc. (NASDAQ:ROKU), which represents 5.90% weightage at $416.7 million and cryptocurrency exchange platform Coinbase Global Inc. (NASDAQ:COIN), which recently moved away from Delaware to Texas, with a 5.67% weightage at $400.4 million.
Tesla scores well on Momentum and Quality metrics, while offering satisfactory Growth, but poor Value. Tesla also has a favorable price trend in the Short, Medium, and Long term. For more such insights, sign up for Benzinga Edge Stock Rankings today!
Price Action: TSLA slid 6.6% to $401.99 at the end of regular trading and further declined 0.4% to $400.40 during the after-hours session, according to Benzinga Pro data.
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