Why did Ark Invest reduce its Tesla and Rocket Lab shares?

Important Changes at Ark Invest

Led by Cathie Wood, Ark Invest has reduced its holdings in iconic stocks such as Tesla (TSLA) and space launch company Rocket Lab (RKLB), which are influential in the electric vehicle market. This strategic shift indicates that the firm is setting a new direction for its future investments.

New Investment Opportunities

Ark Invest has increased its position in the portfolio by investing in companies involved in gene editing and autonomous mobility. For instance, it acquired approximately 155,649 shares of Swiss-American biotechnology company CRISPR Therapeutics (CRSP), adding a total value of $8.8 billion to its portfolio. Additionally, through ARKK and ARKG funds, it purchased a total of approximately 1.13 million shares in Pacific Biosciences of California (PACB).

The ARKQ fund focused on autonomous mobility has acquired about 979,000 shares in WeRide (WRD), a robotaxi developer, while the space-oriented ARKX fund has added around 447,000 shares of Archer Aviation (ACHR) and 19,248 shares of AeroVironment (AVAV). Furthermore, it has also invested in innovative nuclear microreactor producers like Oklo (OKLO).

Sales in Tesla and Rocket Lab

Ark Invest has also executed share sales in several significant companies within the electric vehicle and cloud software sectors. Through the ARKK, ARKW, and ARKQ funds, it sold approximately 60,715 Tesla shares valued at about $30 million. Additionally, the ARKW fund reduced its positions in Cloudflare (NET) and Palantir (PLTR), while opting to decrease its stakes in Roku (ROKU) and Shopify (SHOP). Moreover, minor sales were conducted in Ibotta (IBTA) and Ionis Pharmaceuticals (IONS).

These changes provide clues about Ark Invest's market strategy and future investment focuses. The interest in gene editing and autonomous mobility areas particularly highlights the firm's belief in innovative technologies.