Cathie Wood and her Ark Invest firm made some changes to their investment portfolio on Tuesday. They reduced their holdings in Tesla (TSLA) and increased their position in emerging drone maker Archer Aviation (ACHR). Following these moves, Tesla stock saw a rise on Wednesday while ACHR shares also surged.
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Cathie Wood’s ARKK Stock Picking Strategy Explained
Wood and Ark Invest sold a total of 62,867 shares of Tesla stock on Tuesday, valued at $14.538 million based on the closing price. The majority of the shares were sold from the ARK Innovation ETF (ARKK) with the remaining from the ARK Next Generation Internet ETF (ARKW).
On the other hand, Tesla stock experienced a 10.2% increase on Tuesday as the company surpassed Q2 delivery expectations despite a 4% decline in deliveries compared to the previous year.
Eyes On The Skies
Simultaneously, Wood and ARK purchased 406,912 shares of Archer Aviation on Tuesday, valued at $1.51 million based on the closing price. Archer is working on developing electric vertical takeoff and landing (eVTOL) vehicles for urban areas with the aim of establishing a reliable air-taxi service.
In addition, Archer Aviation received a $55 million investment from Stellantis (STLA) through a strategic funding agreement on Tuesday. Stellantis had previously invested $110 million in Archer in 2023 through various stock purchases and strategic agreements. This investment followed Archer’s successful test flight of its Midnight aircraft on June 8.
Furthermore, Archer recently obtained FAA certification to operate a commercial airline on June 5 and inked a deal with Signature Aviation on June 17, granting access to private aviation terminals worldwide. Archer plans to launch air taxi services at United Airlines (UAL) hubs by late 2025 and expand to other locations in the future.
Wood and ARK also added shares of BLADE Air Mobility (BLDE) on Tuesday, a company focusing on urban air mobility services. BLADE offers helicopter and charter jet services and is transitioning to electric vehicle aircraft.
Other players in the eVTOL drone market include Eve Air Mobility (EVEX) and EHang Holdings (EH), each working on innovative air mobility solutions.
Tesla Stock And ACHR Action
On Wednesday morning, Tesla stock rose by over 3.2%, marking its seventh consecutive daily gain if the trend continues. Year-to-date, Tesla stock has declined by 6.9%.
Meanwhile, ACHR stock surged by 6.2% early on Wednesday, bouncing back above its 50-day moving average. However, ACHR stock has dropped by 39.4% this year.
BLDE stock also saw a slight increase on Wednesday after a 2.7% gain on Tuesday. BLADE shares have decreased by 3.9% year-to-date.
For more stock news and updates, follow Harrison Miller on Twitter @IBD_Harrison
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