Tesla shares (NASDAQ: TSLA) were the highlight of ARK Invest’s ETF moves on Wednesday night, marking the first time the firm has bought the automaker’s shares since April.
Of all of the firms that are bullish on Tesla, ARK is perhaps the most optimistic in terms of outlook. The firm, led by Cathie Wood, has said for years that Tesla shares will increase in value exponentially.
However, ARK has not purchased Tesla shares in about eight months, and its most recent moves before this week were to sell shares as the company’s stock went up.
Large firms, especially ARK, which has a variety of different ETFs, rebalance their portfolios based on a stock’s performance.
When a stock goes up, these firms will sell shares so that particular holding does not take up a certain concentration. Usually, more than ten percent is an indication that one stock is too valuable, and some shares have to be let go.
This is what happened between June and November, as ARK chose to sell about one million shares of Tesla stock.
ARK’s Innovation ETF, known as $ARKK, loaded up on 93,965 Tesla shares, accounting for 0.25% of the total ETF.
Meanwhile, the Next Generation Internet ETF, known as $ARKW, purchased 17,422 shares on Wednesday night.
Tesla is $ARKK’s second-largest holding, making up 7.59 percent. Coinbase is the ETF’s most concentrated stock, with 10.89 percent.
$ARKW has Tesla as the sixth-most concentrated holding, following Coinbase, Block, Roku, Uipath, and Zoom Video.
Disclosure: Joey Klender is a TSLA Shareholder.
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