TLDR
- Cathie Wood’s ARK funds sold 86,136 Tesla shares valued at $38.5 million on January 14 while Tesla dropped 1.8% after Musk’s FSD announcement
- ARK purchased 143,089 Broadcom shares totaling $50.7 million across ARKK and ARKW after stock fell 4.1% on China restrictions
- Tesla maintains top spot in ARKK portfolio with 10.68% weighting and $805.74 million value despite the reduction
- China warned domestic firms against 12 U.S. and Israeli software vendors including Broadcom’s VMware on security concerns
- ARK also acquired $1.7 million Klarna stock and divested $6.4 million Taiwan Semiconductor plus $5.8 million Unity Software
Cathie Wood’s ARK Invest made substantial changes to its portfolio on January 14, selling Tesla stock while buying Broadcom at reduced prices. The moves came during a volatile trading session for both technology companies.
ARK Innovation ETF liquidated 86,136 Tesla shares for $38.52 million. The sale reduced ARK’s position in the electric vehicle manufacturer. Tesla retains its status as the fund’s largest holding with 10.68% allocation and $805.74 million current value.
Tesla shares fell 1.8% after CEO Elon Musk posted on social media platform X. Musk announced Tesla would end direct Full Self-Driving sales after February 14. The driving assistance technology will transition to subscription-only access moving forward.
ARK Acquires Broadcom Following China Vendor Warning
Wood directed funds toward Broadcom, purchasing 143,089 shares through ARKK and ARKW for $50.74 million total. The transaction followed a 4.1% decline in Broadcom’s stock price. This represents one of ARK’s larger single-day acquisitions.
Broadcom stock fell after Chinese officials issued guidance to domestic businesses. The authorities recommended avoiding approximately 12 U.S. and Israeli software companies citing national security reasons. Broadcom’s VMware product line was specifically named in the advisory.
VMware came into Broadcom’s portfolio through a $69 billion acquisition. The company manufactures semiconductors and develops infrastructure software serving AI, networking, and cloud computing sectors. Wood has historically purchased stocks during temporary price weakness.
Other Trading Activity Across ARK Funds
The ARK Next Generation Internet ETF sold 19,310 Taiwan Semiconductor shares worth $6.39 million. The same fund reduced Unity Software holdings by 126,437 shares valued at $5.77 million. Smaller disposals included stakes in Kratos Defense, Teradyne, Natera, Intuit, and Global-E Online.
ARK purchased 56,993 Klarna Group shares for $1.71 million. The fintech platform provides buy now, pay later services across international markets. Klarna competes directly with Affirm and Afterpay in the payment sector.
Wood’s funds also added 72,320 Kodiak AI shares costing $679,084. Kodiak engineers autonomous trucking technology. The purchase fits ARK’s pattern of investing in emerging transportation solutions.
The trading activity shows ARK redistributing capital across technology subsectors. Wood reduced exposure to some positions while building semiconductor and financial technology holdings. The strategy suggests portfolio rebalancing rather than sector rotation.
Tesla remains ARK’s most significant individual investment after the partial sale. Wood has maintained a long-term position in the company for multiple years. The $38.5 million transaction adjusts but does not eliminate the holding.
The Broadcom investment indicates Wood’s confidence despite China-related headwinds. Broadcom’s position in AI infrastructure and cloud technology aligns with ARK’s growth investment framework. Wood routinely invests when market reactions create pricing opportunities.
ARK’s disclosed trades provide insight into Wood’s current market outlook. The shift from Tesla to Broadcom reflects tactical positioning based on recent developments. Both companies continue to represent core technology sectors in ARK’s portfolios.
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