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

Significant Changes from Ark Invest

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

New Investment Opportunities

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

The autonomous mobility-focused ARKQ fund has acquired around 979,000 shares of WeRide (WRD), a developer of robotaxis, while the space-focused ARKX fund has added about 447,000 shares of Archer Aviation (ACHR) and 19,248 shares of AeroVironment (AVAV). The firm has also invested in innovative nuclear micro-reactor manufacturers like Oklo (OKLO).

Sales in Tesla and Rocket Lab

Ark Invest has also executed stock sales in several key companies in the electric vehicle and cloud software sectors. Through the ARKK, ARKW, and ARKQ funds, it sold approximately 60,715 Tesla shares worth about $30 million in total. Furthermore, the ARKW fund has reduced its positions in Cloudflare (NET) and Palantir (PLTR). It chose to decrease its holdings in Roku (ROKU) and Shopify (SHOP). Additionally, small-scale sales were made in Ibotta (IBTA) and Ionis Pharmaceuticals (IONS).

These changes provide clues about Ark Invest's market strategy and future investment focuses. Notably, the company's interest in gene regulation and autonomous mobility sectors reflects its belief in innovative technologies.