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 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 charting a new direction for its future investments.

New Investment Opportunities

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

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

Sales in Tesla and Rocket Lab

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

These changes provide insights into Ark Invest's market strategy and future investment focus. The interest in gene regulation and autonomous mobility sectors particularly reflects the firm's belief in innovative technologies.