Tesla shares flashed a major sell signal on Friday. Cathie Wood ignored her.

Tesla (TSLA) sold off aggressively on Friday, sending a sell signal to investors following the electric car giant's robotaxi event. However, Cathie Wood and her company Ark Invest went ahead with the purchase of nearly $3 million worth of TSLA shares as of the end of last week. Tesla stock rose on Monday.

Cathie Wood's Ark Investment Management bought 12,730 shares of TSLA stock on Friday, according to the company's daily trading filing. Based on the closing price of 217.80, Wood spent $2.77 million buying Tesla shares.

Wood's Tesla trades were executed ARK The next generation of the Internet (Arco). As of October 14, Tesla stock is the No. 3 stock in ARKW, with a weight of 8.87%. Tesla shares sold off 8.8% to 217.80 on Friday, triggering a sell signal as shares decisively broke below the 50-day moving average on heavy volume.

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While Tesla stock fell on Friday, Uber technologies (Uber) rose 10.8%, moving above the buy point at 82.14.

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TSLA shares rose 0.6% to 219.10 during Monday's market action.

Wood, who has long been very bullish on Tesla's push for autonomy and robotics goals, attended the Tesla robotaxi event on Thursday. On June 12, Ark Invest updated Tesla's stock price target to 2,600 by 2029, estimating that approximately 90% of Tesla's enterprise value and profits will be attributed to its robotics business in 2029.

Wood's Ark Invest tends to buy Tesla shares and other positions amid selloffs or when they drop below major moving averages.

Tesla stock last week

Tesla stock fell 12.9% to 217.81, the worst weekly loss since April. Friday's 8.8% decline pushed Tesla decisively below its 50-day line on heavy volume. This is a notable sell signal for Tesla. New buyers are likely sitting on losses. Long-term bondholders, who have a lower-cost basis, can choose to remain so.

Tesla Robotaxi Event: Cybercab and Robovan Revealed; Musk expects self-driving “next year”

Friday's sell-off came on the heels of a highly publicized Tesla robotaxi event. CEO Elon Musk previewed the Cybercab alongside the Robovan, once again predicting that fully self-driving Tesla cars will hit the roads next year. However, analysts were widely disappointed by the lack of details or specifics from the Tesla CEO.

Tesla also didn't show off an “affordable” model, a yet-to-be-seen electric car that's supposed to go into production in early 2025. This, along with the updated Model Y, is key to Tesla boosting or at least maintaining delivery levels next year. .

Tesla reported its third-quarter earnings and revenue on October 23, with analyst consensus expecting quarterly earnings to decline by about 11%. Tesla sales are expected to rise about 9% in the third quarter, according to FactSet.

Please follow Kit Norton on X @ketnorton For more coverage.

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