Cathie Wood’s Ark Invest exchange-traded funds trimmed their stakes in Tesla Inc.’s stock by a total of more than $25 million, as part of a rebalancing that left the electric vehicle giant among the ETFs’ largest holdings.
The high-profile investor’s ARK Innovation ETF
ARKK,
which invests in “disruptive innovation” companies, disclosed that it sold 88,531 shares of Tesla
TSLA,
on Wednesday, which at Wednesday’s closing price of $261.16 would be valued at $23.1 million.
The marked the first sales of Tesla’s stock by the ETF in October, after it sold 235,676 Tesla shares in September. Based on the Sept. 29 closing price of $250.22, those shares would be valued at about $59 million.
Tesla’s stock rose 0.4% in afternoon trading on Thursday, after climbing 5.9% on Wednesday.
In addition, the ARK Autonomous Tech & Robotics ETF
ARKQ
sold 1,883 Tesla shares, which would be valued at just under $500,000, and the ARK Next Generation Internet ETF
ARKW
sold 7,185 shares, which would be valued at $1.9 billion.
That brings the value of the total Tesla shares sold by the ARK ETFs to about $25.5 million.
Still, Tesla remains with ARK Innovation ETF’s largest holding with an 11.3% weighting and market value of $757.6 million as of Thursday morning, the ETF disclosed.
The stock is also the largest holding of the ARK Autonomous Tech & Robotics ETF with a 14.6% weighting and is the fourth-largest holding of the ARK Next Generation Internet ETF with a 6.8% weighting.
Investment funds will often sell some shares of large holdings, not necessarily to cut their stakes in those holdings, but to maintain a certain weighting as the prices of the stocks rise.
Tesla’s stock has gained 4.8% so far in October, after falling 3.1% in September.
Although the stock has still more than doubled year to date, it has corrected more than 11% from its July peak amid some concerns over profitability, as deliveries have disappointed even as the company lowered prices amid increasing competition.
Meanwhile, the ARK Innovation ETF has advanced 23.9% and the S&P 500 index
SPX
has gained 11.1%.
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