TLDR
- ARK Invest dumped 86,136 Tesla shares for $38.5 million on January 14 after Musk announced FSD would become subscription-only after February 14
- Wood bought 143,089 Broadcom shares worth $50.7 million following a 4.1% drop caused by China’s software vendor restrictions
- Tesla remains ARK’s largest holding at 10.68% weight despite the sale, valued at $805.74 million
- ARK added $1.7 million in Klarna stock and sold $6.4 million in Taiwan Semiconductor and $5.8 million in Unity Software
- The trades reflect portfolio rebalancing toward semiconductors and fintech while reducing exposure to electric vehicles and chipmakers
Cathie Wood’s ARK Invest executed major portfolio changes on January 14, offloading Tesla shares while purchasing Broadcom stock at a discount. The transactions came as both companies dealt with separate issues impacting their stock prices.
The ARK Innovation ETF sold 86,136 Tesla shares worth $38.52 million. This marked a substantial reduction in one of ARK’s core holdings. However, Tesla still maintains its position as ARKK’s top holding with a 10.68% portfolio weight and current value of $805.74 million.
Tesla stock declined 1.8% that day following CEO Elon Musk’s announcement on X. Musk stated Tesla would discontinue direct sales of Full Self-Driving technology after February 14. The autonomous driving feature will only be available through monthly subscription after that date.
Wood Invests $50M in Broadcom Following China News
ARK purchased 143,089 Broadcom shares across its ARKK and ARKW funds totaling $50.74 million. The purchase came after Broadcom stock dropped 4.1% in trading. Wood has a track record of buying quality stocks during price declines.
The Broadcom selloff was triggered by Chinese government actions. Chinese authorities instructed domestic companies to avoid approximately 12 U.S. and Israeli software vendors on national security grounds. Broadcom’s VMware software was included on the list.
Broadcom paid $69 billion to acquire VMware. The company produces semiconductors and infrastructure software for AI, networking, and cloud computing applications. The $50.7 million purchase represents one of ARK’s largest single-day investments recently.
Additional ARK Portfolio Moves
ARK Next Generation Internet ETF sold 19,310 Taiwan Semiconductor shares for $6.39 million. The fund also offloaded 126,437 Unity Software shares valued at $5.77 million. Other sales included smaller positions in Kratos Defense, Teradyne, Natera, Intuit, and Global-E Online.
ARK added 56,993 Klarna Group shares worth $1.71 million. The Swedish fintech company operates in the buy now, pay later sector competing with Affirm and Afterpay. Klarna has been expanding its global operations.
The funds also purchased 72,320 Kodiak AI shares for $679,084. Kodiak develops autonomous trucking systems. This aligns with Wood’s investment focus on innovative transportation technology.
These trades demonstrate ARK’s strategy of rotating capital between tech sectors. The firm decreased positions in certain growth stocks while increasing semiconductor and fintech exposure. Wood appears to be diversifying across multiple technology categories.
The Tesla sale represents a shift in strategy but not a complete exit. Tesla has been central to Wood’s investment thesis for years. The stock continues to be ARK’s single largest holding even after the $38.5 million reduction.
The Broadcom purchase suggests Wood sees value after the China-related price drop. Broadcom’s semiconductor and software business positions it for growth in AI and cloud infrastructure. Wood frequently takes advantage of short-term price weakness in companies she believes have strong long-term prospects.
