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

Important Changes from Ark Invest

Led by Cathie Wood, Ark Invest 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 redefining its future investment directions.

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 acquired approximately 155,649 shares of CRISPR Therapeutics (CRSP), a Swiss-American biotechnology company developing gene-based drugs, thereby boosting its total portfolio value to $8.8 billion. Additionally, through the ARKK and ARKG funds, it purchased approximately 1.13 million shares of Pacific Biosciences of California (PACB).

The ARKQ fund focused on autonomous mobility acquired about 979,000 shares of WeRide (WRD), which develops robotaxis; while the space-oriented ARKX fund added approximately 447,000 shares of Archer Aviation (ACHR) and 19,248 shares of AeroVironment (AVAV). Moreover, it invested in innovative nuclear microreactor manufacturers like Oklo (OKLO).

Sales in Tesla and Rocket Lab

Ark Invest also conducted share sales in some key companies in the electric vehicle and cloud software sectors. Through the ARKK, ARKW, and ARKQ funds, it sold a total of approximately 60,715 Tesla shares valued at around $30 million. Additionally, the ARKW fund reduced its positions in companies like Cloudflare (NET) and Palantir (PLTR). It also opted to decrease its stakes in Roku (ROKU) and Shopify (SHOP). Furthermore, it executed small-scale sales in Ibotta (IBTA) and Ionis Pharmaceuticals (IONS).

These changes provide insights into Ark Invest's market strategy and future investment focuses. The particular interest in gene regulation and autonomous mobility fields is indicative of the company's belief in innovative technologies.