Tesla, Inc TSLA was plunging about 13% lower Thursday after printing a fourth-quarter earnings miss, which Benzinga pointed out on Wednesday was a likely scenario due to a bear flag that had developed on the stock’s chart.
The EV giant reported fourth-quarter earnings per share of 71 cents on revenues of $25.17 billion, which missed a Street consensus estimate of earnings per share of 74 cents on revenues of $25.62 billion.
Traders and investors who played Tesla’s move to the downside by taking a position in the AXS Short Innovation Daily ETF SARK were enjoying about a 0.9% return on Thursday.
SARK is an actively managed ETF aiming to inversely track the daily performance of Cathie Wood-led ARK Innovation ETF ARKK, the latter which holds a 7.77% weighting of Tesla.
