Cathie Wood Invests $18.5M in Tesla Stock, Sells Shares of Archer, Roku, and Coinbase

Cathie Wood's ARK Invest added $18.5 million to Tesla stock through its ARK Innovation ETF and ARK Next Generation Internet ETF, highlighting the firm's continued conviction in the electric vehicle giant. ARK also trimmed stakes in Archer Aviation, Roku, and Coinbase stocks. Tesla has a Hold consensus rating with a $295.80 average price target, while Archer, Coinbase, and Roku have Moderate Buy ratings.

ARK Invest, led by Cathie Wood, has recently made significant moves in its portfolio, adding $18.5 million to Tesla Inc. (TSLA) stock through its ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW). This move underscores ARK's continued confidence in Tesla, despite recent market volatility and Elon Musk's return to politics [1].

The Tesla trade involved purchasing 59,705 shares, valued at approximately $18.72 million based on the latest closing price. This investment aligns with Wood's long-standing bullish stance on Tesla, whom she has described as the "largest AI project on earth" and the company behind the "trillion-dollar opportunity" of Robotaxis [2]. Despite Musk's political activities and the associated investor concerns, Wood remains steadfast in her belief in Tesla's growth potential, particularly with the Optimus humanoid robot and the Robotaxi venture.

ARK Invest also made other notable trades. It sold 32,446 shares of Roku Inc. (ROKU) and 168,990 shares of Archer Aviation Inc. (ACHR), totaling approximately $3.77 million and $2.23 million, respectively. Additionally, it sold 5,596 shares of Coinbase Global Inc. (COIN) and bought 18,387 shares of BWX Technologies Inc. (BWXT). These trades suggest a strategic shift in ARK's holdings, potentially reflecting a reassessment of these companies' growth prospects [1].

ARK's position in Tesla is substantial, with the stock accounting for approximately 8.5% of its portfolio, valued at over $840 million. In contrast, ARK has completely exited its position in Apple Inc. (AAPL), citing slower growth and lack of significant disruption as reasons for the move [2].

Overall, ARK Invest's recent trades reflect a mix of conviction and strategic adjustments. The firm's continued investment in Tesla underscores its belief in the company's long-term growth potential, while the other trades suggest a more nuanced view of the market. Investors should monitor these developments closely as they indicate ARK's evolving strategy and outlook on the tech and AI sectors.

References:
[1] https://www.benzinga.com/news/25/07/46381062/cathie-woods-ark-invest-continues-to-bet-on-tesla-offloads-kratos-defense-and-coinbase
[2] https://www.benzinga.com/markets/tech/25/07/46359878/cathie-wood-continues-to-back-tesla-as-investors-panic-amid-elon-musks-return-to-politics-calls-robotaxi-bet-a-trillion-dollar-opportunity