Key Takeaways
- ARK Invest acquired 160,151 shares of Tesla distributed across four ETFs, totaling approximately $59.9 million following a nearly 15% stock decline
- Tesla’s second-quarter operating profit of roughly $400 million fell short of Wall Street projections by $1.3 billion
- ARK divested 976,368 Figma shares from two ETFs, amounting to approximately $21 million
- ARK added 130,136 shares of Circle Internet Group valued at roughly $8.6 million
- ARK reduced holdings in Robinhood, Deere, Twist Bioscience, and 10X Genomics
On Thursday, July 23, Cathie Wood’s ARK Invest executed a significant buying spree in Tesla shares, capitalizing on the stock’s sharp decline triggered by underwhelming quarterly results. Simultaneously, the investment firm substantially decreased its Figma holdings and expanded its position in Circle Internet.
The electric vehicle manufacturer disclosed second-quarter operating earnings of approximately $400 million. This figure came in roughly $1.3 billion short of analyst expectations. The disappointing results triggered a nearly 15% plunge in Tesla’s stock price on Thursday. ARK seized the opportunity to accumulate shares at the reduced valuation.
The investment firm accumulated 160,151 Tesla shares distributed among four different funds — the ARK Innovation ETF, ARK Space & Defense Innovation ETF, ARK Next Generation Internet ETF, and ARK Autonomous Technology & Robotics ETF. The combined transaction value reached approximately $59.9 million.
Tesla represents the dominant position within the ARK Innovation ETF, comprising nearly 10% of the fund’s total assets. ARK has maintained unwavering confidence in Tesla despite the stock’s challenging performance throughout the current year.
As of Friday’s opening, Tesla shares were down 29% for the year and had declined 3% over the trailing twelve months. The stock experienced an additional 0.6% decline in early Friday session trading, resting at approximately $317.86.
Tesla Faces Profitability Headwinds
The automaker delivered approximately 480,000 vehicles during the second quarter, representing a 25% year-over-year increase. Despite this volume expansion, diminished pricing power and elevated operational costs eroded profitability margins.
Tesla currently commands a valuation exceeding 150 times forward earnings projections. By comparison, the remaining members of the Magnificent Seven trade at an average multiple of approximately 24 times. This substantial valuation premium has generated concern among certain market participants.
The company introduced its robotaxi service in Austin, Texas, during June 2025. While the offering has subsequently expanded to several additional cities, adoption has progressed at a measured pace.
ARK Divests Figma and Scales Back Multiple Holdings
On the divestiture front, ARK liquidated 976,368 Figma shares from its ARKK and ARKW ETFs, generating proceeds of approximately $20.96 million. This transaction extends a recent trend of ARK systematically reducing its Figma allocation.
The firm also disposed of 45,713 shares of Twist Bioscience and 152,597 shares of 10X Genomics. Both transactions occurred through the ARKK ETF and indicate a strategic retreat from biotechnology investments.
Robinhood experienced another reduction as ARK sold 40,553 shares via its ARKW fund. The persistent selling pressure across multiple trading sessions suggests an intentional withdrawal from the digital brokerage platform.
ARK decreased its Deere position by 15,177 shares distributed across three ETFs, representing approximately $9.2 million in value.
ARK Expands Circle Internet and Other Strategic Positions
ARK acquired 130,136 Circle Internet Group shares distributed among ARKK, ARKW, and ARKF ETFs, valued at roughly $8.6 million. Circle Internet functions within the digital finance and blockchain sectors, domains where ARK has been systematically expanding exposure.
Additional purchases included 31,016 shares of Compass Pathways for $370,020 and 48,377 shares of Securitize Corp for $371,051.
The trading activity demonstrates ARK’s active portfolio rebalancing strategy — withdrawing from biotechnology and online brokerage investments while amplifying its Tesla conviction and incorporating cryptocurrency-related assets such as Circle Internet.
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