On Thursday, Cathie Wood-led Ark Invest made significant trading decisions involving Tesla Inc. and Archer Aviation Inc..
The Tesla Trade
Ark Invest’s ARK Innovation ETF and ARK Autonomous Technology & Robotics ETF reduced their holdings in Tesla Inc. by selling 34,823 and 1,777 shares, respectively. This move follows a period where Tesla’s stock has been on a remarkable upswing, reaching new highs. The shares were sold at a closing price of $418.10, totaling approximately $15.3 million in value.
The decision to trim Tesla holdings comes amid a broader market rally, with analysts raising price targets for the electric vehicle leader. Notably, Thursday marked the second consecutive day when Ark sold Tesla shares. On Wednesday the firm had sold $21.8 million worth of stock.
As reported, Tesla’s stock has been buoyed by favorable market conditions, including potential interest rate cuts by the Federal Reserve. This strategic reduction in Tesla shares aligns with Ark Invest’s approach to capitalize on high valuations and reallocate capital to other promising opportunities.
The Archer Aviation Trade
Ark Invest significantly increased its stake in Archer Aviation Inc. through ARKK, ARKQ, and ARK Space Exploration & Innovation ETF. The funds collectively acquired 5,080,595 shares. With Archer’s shares closing at $7.17, the total investment amounts to approximately $36.5 million.
This substantial investment in Archer Aviation comes on the heels of the company’s announcement of a new partnership with Anduril Industries to develop a hybrid VTOL aircraft for defense applications. Additionally, Archer has raised $430 million in equity, bolstering its financial position for future growth.
Recently, Archer Aviation also partnered with key UAE entities to pioneer eVTOL air taxis in Abu Dhabi, targeting a 2026 launch.
Other Key Trades:
Purchased Tempus AI Inc. shares via ARK Innovation ETF and ARK Genomic Revolution ETF .
Acquired Symbotic Inc. shares through ARK Autonomous Technology & Robotics ETF .
Sold Veeva Systems Inc. shares via ARK Genomic Revolution ETF.
ARK Space Exploration & Innovation ETF sold Rocket Lab USA Inc. shares.
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