ARK Bets on Tech and Industrials as Tesla Navigates Global Regulatory Storms

Cathie Wood's ARK Innovation ETF made a significant strategic shift in late November 2025, selling $11.4 million worth of Tesla shares while increasing its stakes in Coinbase and Deere. The move, detailed in ARK's daily trade report, reflects a broader reallocation toward technology and industrial sectors amid evolving market dynamics. The sale of 27,102 Tesla shares through the ARKK ETF aligns with a pattern of divesting the electric vehicle giant, which has faced regulatory and operational headwinds.

Tesla's stock has been under pressure due to a combination of factors, including legal battles in India over trademark infringement and regulatory scrutiny in Europe regarding its Full Self-Driving (FSD) system. In November 2025, the Delhi High Court extended an interim order barring Tesla Power India from using the "Tesla" mark or promoting electric vehicles until the dispute is resolved. Meanwhile, European regulators have delayed approval for Tesla's FSD technology, with the Dutch RDW emphasizing that safety compliance-not public pressure-will determine the timeline https://www.bloomberg.com/news/articles/2025-11-24/tesla-s-eu-regulator-denies-that-it-s-agreed-to-approve-fsd. These developments have added uncertainty to Tesla's growth trajectory, prompting investors like ARK to reassess their exposure.

The shift underscores ARK's focus on high-growth, innovation-driven sectors. While Tesla remains a key player in electric vehicles and AI, its regulatory hurdles and competitive pressures have prompted a recalibration. Coinbase, meanwhile, represents exposure to the maturing cryptocurrency ecosystem, and Deere's industrial automation and precision agriculture offerings align with long-term productivity trends.

Concurrently, ARK bolstered its positions in Coinbase and Deere, acquiring $15.8 million and $15.2 million worth of shares, respectively. The cryptocurrency exchange's recent strategic partnerships and expanding institutional adoption likely contributed to its appeal. For Deere, the purchase aligns with the company's recent earnings beat and resilience in construction and forestry markets, despite broader agricultural sector challenges. Deere reported $12.39 billion in fiscal fourth-quarter revenue, with sales in construction and forestry rising 27% year-over-year, though its full-year outlook remained cautious due to tariffs and inventory management pressures.

Market analysts note that institutional investors are increasingly prioritizing companies with clear regulatory pathways and scalable business models. Tesla's legal and regulatory challenges, coupled with mixed guidance from management on FSD timelines, may have contributed to ARK's decision to pare its position. The firm's purchases of Coinbase and Deere suggest a preference for firms with tangible growth vectors and less regulatory ambiguity.