After Tesla’s stock plunged nearly 15% following a disappointing earnings release, ARK Invest swooped in to buy over 160,000 Tesla shares across four of its ETFs, spending close to $60 million. The purchase came despite the company reporting a second-quarter operating profit of roughly $400 million, falling short of Wall Street’s forecast by about $1.3 billion.
The bulk of the Tesla shares were acquired through ARK Innovation ETF, ARK Space & Defense Innovation ETF, ARK Next Generation Internet ETF, and ARK Autonomous Technology & Robotics ETF. Tesla remains the largest holding within the ARK Innovation fund, accounting for nearly 10% of its assets, underscoring ARK’s continued confidence even as Tesla’s stock dropped 29% year-to-date and edged down slightly in early Friday trading.
Shifts in ARK’s Portfolio
Alongside buying Tesla, ARK offloaded nearly one million shares of Figma, netting around $21 million. This sale continues ARK’s recent trend of trimming its Figma position. Other reductions appeared in biotech names like Twist Bioscience and 10X Genomics, with ARK selling tens of thousands of shares via its ARKK ETF.
Robinhood shares were also cut by over 40,000 through the ARKW fund, signaling a gradual exit from this online brokerage. Meanwhile, Deere stock was trimmed by 15,177 shares across three ETFs, yielding approximately $9.2 million.
On the buying side, ARK boosted its stake in Circle Internet Group, acquiring about 130,000 shares for $8.6 million across ARKK, ARKW, and ARKF ETFs. Circle Internet’s focus on digital finance and blockchain aligns with ARK’s growing appetite for exposure in these sectors.
Despite Tesla’s impressive 25% year-over-year increase in vehicle deliveries during Q2, challenged pricing and rising costs have put pressure on profitability. Tesla’s valuation remains extremely high, trading at more than 150 times forward earnings, considerably above peers.
