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As Tesla’s stock is surging, Ark Invest, led by Cathie Wood, has made significant adjustments to its portfolio by selling off a substantial number of Tesla shares.
Ark Invest decreased its holdings in Tesla in two of its ETFs—the ARK Innovation ETF and the ARK Next Generation Internet ETF. The firm sold 56,425 and 6,442 shares, respectively, for a total of $14.54 million. It was ARK’s first sale since October 2023.
Despite the significant selloff, Tesla remains the largest holding in Ark’s portfolio, comprising 14.6% of all assets, valued at $891.89 million as of Wednesday morning.
A strong second-quarter delivery report helped Tesla share prices close 10.2% higher on Tuesday at $231.26. The shares were up over 7% mid-morning on Wednesday at $248.
Cathie Wood’s ARK has always been bullish on Tesla stock. It predicted that by 2029, Tesla’s stock price could climb by more than 1,400% to reach $2,600 per share. Cathie Wood, from ARK Investment Management, mentioned that robotaxis could potentially account for 90% of Tesla’s business, although this hasn’t been launched yet. On August 8, Tesla will host a robotaxi event that analysts generally view as more aspirational in nature rather than a product launch.
ARK buys Palantir and others
At the same time, Ark Invest purchased 37,053 shares of Palantir worth $957,078 through its ARK Autonomous Technology & Robotics ETF. Palantir develops AI tools for military and intelligence agencies and is often described as the “Messi of AI.” The company has been one of the marquee stocks of the tech world’s current AI frenzy, with new products helping to catapult it more than 200% over the last 12 months.
With its ARKK ETF, ARK bought 406,912 shares of Archer Aviation Inc., totaling $1,391,639. ARK invested $3,633,623 across its ARKK and ARKG ETFs in Intellia Therapeutics Inc., totaling 161,710 shares. ARK also added 504,988 shares of Recurion Pharmaceuticals Inc., valued at $3,767,210, to its portfolio.