Key Highlights
- 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 reached approximately $400 million, falling $1.3 billion short of Wall Street projections
- ARK divested 976,368 Figma shares from two ETFs, valued at roughly $21 million
- ARK acquired 130,136 shares in Circle Internet Group for approximately $8.6 million
- ARK reduced holdings in Robinhood, Deere, Twist Bioscience, and 10X Genomics
On Thursday, July 23, Cathie Wood’s ARK Invest executed significant portfolio adjustments, capitalizing on Tesla’s steep decline following disappointing quarterly results. Simultaneously, the firm substantially reduced its Figma holdings and expanded its position in Circle Internet.
The electric vehicle manufacturer posted second-quarter operating profit of approximately $400 million. This figure landed roughly $1.3 billion beneath analyst expectations. The stock plummeted nearly 15% during Thursday’s session. ARK capitalized on the selloff.
The investment firm accumulated 160,151 Tesla shares distributed among four portfolios ā ARK Innovation ETF, ARK Space & Defense Innovation ETF, ARK Next Generation Internet ETF, and ARK Autonomous Technology & Robotics ETF. The aggregate acquisition totaled approximately $59.9 million.
Tesla represents the top holding within the ARK Innovation ETF, accounting for nearly 10% of total fund assets. ARK has maintained unwavering conviction in Tesla despite the stock’s challenging performance throughout the current year.
Heading into Friday’s session, Tesla had declined 29% year to date and dropped 3% over the trailing twelve months. The shares retreated an additional 0.6% during early Friday trading, hovering around $317.86.
Tesla Faces Fundamental Headwinds
Tesla reported deliveries of approximately 480,000 vehicles during Q2, representing a 25% year-over-year increase. Nevertheless, diminished pricing power and elevated costs counterbalanced the volume expansion, pressuring profitability margins.
Tesla currently commands a valuation exceeding 150 times forward earnings. The remaining Magnificent Seven stocks trade at an average multiple of approximately 24 times. This substantial valuation premium has generated concern among certain market participants.
Tesla initiated a robotaxi service in Austin, Texas during June 2025. The deployment has subsequently reached several additional metropolitan areas, though expansion momentum has remained sluggish.
ARK Divests Figma and Reduces Multiple Holdings
On the divestiture front, ARK liquidated 976,368 Figma shares from its ARKK and ARKW ETFs for approximately $20.96 million. This transaction extends an ongoing trend of ARK decreasing its Figma allocation over recent sessions.
ARK additionally divested 45,713 shares of Twist Bioscience and 152,597 shares of 10X Genomics. Both transactions occurred through the ARKK ETF and indicate a retreat from biotechnology holdings.
Robinhood experienced further position trimming, with ARK disposing of 40,553 shares via its ARKW fund. Repeated selling across multiple sessions indicates a methodical withdrawal from the digital brokerage platform.
ARK reduced its Deere position by 15,177 shares distributed across three ETFs for approximately $9.2 million.
ARK Expands Circle Internet and Minor Positions
ARK purchased 130,136 Circle Internet Group shares distributed among ARKK, ARKW, and ARKF ETFs for approximately $8.6 million. Circle Internet specializes in digital finance and blockchain infrastructure, sectors where ARK has been expanding allocation.
Additional acquisitions included 31,016 shares of Compass Pathways valued at $370,020 and 48,377 shares of Securitize Corp totaling $371,051.
The trading activity demonstrates ARK’s active portfolio rebalancing strategy ā rotating away from biotechnology and online brokerage equities while reinforcing conviction in Tesla and expanding cryptocurrency-adjacent holdings such as Circle Internet.
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