Cathie Wood's ARK Innovation ETF Shifts Gears Back to Tesla Stock

Cathie Wood's flagship investment vehicle, the ARK Innovation ETF, has altered its course by acquiring shares in Tesla Inc., marking a change in strategy from its earlier position of selling Tesla stock, which was once the ETF's primary holding. This tactical move indicates a renewed confidence by ARK in the electric vehicle leader.

Recent Purchases Signal a Bullish Turn

ARK Innovation ETF recently invested in an additional 93,965 Tesla shares. This purchase, based on Tesla's closing stock price on Wednesday of $247.14, holds an estimated worth of $23.2 million. Given this new acquisition, Tesla now ranks as the second largest holding in the ETF's portfolio, with a 7.59% weight. Despite this, Tesla remains behind Coinbase Global Inc., which leads with a 10.89% stake in the ETF.

ARK's Trading History with Tesla

In contrast to the current buying trend, ARK Innovation ETF previously offloaded Tesla stock, particularly noticeable in October when it sold 245,197 shares. At the time of sale, the value of these shares was around $63.3 million. This move came at a point when Tesla was the ETF's main holding.

Following the recent transactions, the ARK Innovation ETF saw a 1.5% rise in premarket trading on Thursday, bouncing back from a 4.1% decrease the day before. Impressively, the ETF has surged by 63.3% year to date, starkly contrasting with the total 74.9% decline faced over the previous two years. The S&P 500 index, by comparison, increased by 22.4% this year.

Other Investments and Trades

The ARK Innovation ETF was also involved in other noteworthy trading moves. Besides Tesla, the ETF shed 132,782 shares of Coinbase and diversified by purchasing 133,003 shares of Zoom Video Communications. Meanwhile, ARK’s ARK Next Generation Internet ETF added Tesla shares to its basket along with several other tech-based stocks, while selling Coinbase shares and parts of its Grayscale Bitcoin Trust holding.

On another front, the ARK Fintech Innovation ETF expanded its portfolio by acquiring shares in Meta Platforms Inc., suggesting a strategic approach across various technology and digital finance sectors.

ARK, Tesla, ETFs