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Cathie Wood: I'd Sell Tesla if It Hits $3,000 by End of '22

'My guess is that we would be peeling out" of Tesla if it hits the $3,000 benchmark, Cathie Wood said at a conference.
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Cathie Wood of Ark Investment said Wednesday that she would likely sell Tesla  (TSLA) - Get Tesla Inc Report if the electric-vehicle maker's stock reaches her five-year target of $3,000 by the end of 2022.

The vaunted Palo Alto, Calif., company recently traded at $758.80, up 0.9%, and has gained 7% year to date.

“If nothing were to change in our outlook, and we got to $3,000 next year, my guess is that we would be peeling out of it,” she said at an investment conference, according to Bloomberg.

On Sept. 16, Ark sold 81,600 shares of Tesla, then valued at $61.7 million.

The sales came in the ARK Innovation ETF  (ARKK) - Get ARK Innovation ETF Report and ARK Next Generation Internet ETF  (ARKW) - Get ARK Next Generation Internet ETF Report

ARK Innovation unloaded 70,161 shares, and ARK Next Generation shed 11,448.

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That puts the value of ARK ETFs’ total Tesla sales so far this month at $266 million, according to Bloomberg.

The funds have shed more than 350,000 shares during that period, but the automaker remains their biggest holding, according to Bloomberg.

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At the Morningstar Investment Conference, the money manager Rob Arnott, chairman of Research Affiliates, challenged Wood’s stance, Bloomberg reports.

“What’s the sell discipline that can protect those gains?” he said. “What’s the sell discipline that can rotate you into undiscovered disrupters where the market is unaware of what they’re doing?”

Meanwhile, Morningstar analyst Seth Goldstein puts fair value at $600 for Tesla and assigns it a narrow moat. 

“Tesla’s moat stems from intangible assets and cost advantage,” he wrote in a commentary last month.