TLDR
- ARK Invest sold approximately 5,400 Tesla shares worth $2.4 million on November 10 as part of ongoing portfolio rebalancing efforts.
- The investment firm purchased $2.5 million in Pony AI stock, betting on autonomous vehicle technology growth.
- ARK added $4.9 million in Taiwan Semiconductor shares as AI chip demand continues to increase.
- Cathie Wood’s firm invested $12.4 million in Baidu, expanding its exposure to Chinese artificial intelligence companies.
- Tesla’s October sales in China fell 32.3% compared to September and dropped 9.9% year-over-year to 61,497 units.
Cathie Wood’s ARK Invest made several portfolio changes on November 10, selling Tesla shares while adding positions in artificial intelligence and semiconductor stocks. The trades show the firm’s continued strategy of reducing Tesla exposure while increasing bets on AI-related companies.
ARK sold roughly 5,400 Tesla shares across its ETFs. The transaction totaled approximately $2.4 million based on Tesla’s closing price of $445.23 per share.
Tesla, Inc., TSLA
The sale represents another step in ARK’s ongoing effort to reduce Tesla’s weight in its portfolio. The electric vehicle maker has been a core holding for Wood’s investment funds.
Tesla stock has shown volatility recently as investors evaluate the company’s performance. Sales data from China has raised questions about demand in one of Tesla’s key markets.
October sales figures from the China Passenger Car Association revealed challenges for Tesla. The company sold 61,497 China-made vehicles during the month, down 9.9% from the same period last year.
The month-over-month comparison showed an even steeper decline. Tesla’s China sales dropped 32.3% from September to October.
Autonomous Driving Investment
ARK’s Autonomous Technology & Robotics ETF bought 173,798 shares of Pony AI. The purchase was valued at about $2.5 million based on a closing price of $14.45 per share.
Pony AI Inc. American Depositary Shares, PONY
Pony AI focuses on self-driving vehicle technology. The company recently marked the production of its 300th ARCFOX Alpha T5 robotaxi through a partnership with BAIC Group.
Pony AI also completed a Hong Kong stock market listing. The company priced shares at HK$139 each, raising approximately HK$6.7 billion from the offering.
Trading started on the Hong Kong Stock Exchange on November 6 under the ticker 2026. Pony AI stated it would use the funds to commercialize Level 4 autonomous driving technology and expand research efforts.
Semiconductor and AI Acquisitions
ARK’s Space Exploration & Innovation ETF purchased 16,598 Taiwan Semiconductor shares. The investment totaled around $4.9 million.
Taiwan Semiconductor reported strong October revenue driven by demand for advanced chips. The company supplies processors to major tech firms including NVIDIA and Tesla.
ARK made its largest purchase in Baidu stock. The firm bought 94,095 shares worth roughly $12.4 million across the ARKK and ARKQ ETFs.
Baidu remains a key player in China’s AI industry. The company continues developing AI technologies despite regulatory challenges facing Chinese firms with U.S. listings.
Portfolio Strategy
The trades reflect ARK’s investment approach to technology sectors. Wood’s firm has been adjusting its holdings to manage risk and capture growth opportunities.
The sales reduced ARK’s Tesla concentration while the purchases increased exposure to AI infrastructure and autonomous technology. These moves align with the firm’s focus on disruptive innovation themes.
Taiwan Semiconductor’s position in the chip supply chain makes it central to AI development. The company manufactures processors that power artificial intelligence applications and data centers.
ARK’s investment in Chinese AI companies comes as the sector faces regulatory scrutiny. Both U.S. and Chinese authorities have increased oversight of cross-border technology investments.
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Source: https://blockonomi.com/cathie-wood-reduces-tesla-holdings-while-buying-these-chip-and-ai-stocks/