Cathie Wood is still selling Tesla Inc. stock even though it is going up in value, but if you look at what her main ETF holds, you can see that the famous investor is becoming more and more optimistic about the electric car giant.
Wood’s ARK Innovation ETF said it sold 13,040 Tesla shares TSLA -2.35% on Monday. At the end of the day, those shares were worth about $5.6 million.
The ETF ARKK -0.21% has sold 214,031 shares worth a little more than $92 million so far in December. The stock is up 24.8% so far this month as of Monday.
The ETF also said it had 2,530,383 Tesla shares, which were worth $1.09 billion at the end of the trading day on Monday. As a result, it held 16.13% of Tesla’s stock, which was by far the most.
That’s different from the end of November, when the ETF held 2,744,414 shares worth “just” $947.3 million before the December rise.
Elon Musk, the CEO of Tesla, bet a lot of money that Donald Trump would win the election. Since then, the Ark Innovation ETF has sold 432,687 Tesla shares, which are now worth $186.3 million.
The ETF did own 2,963,070 shares, but they were worth “only” $745 million right before the election.
When the prices of the stocks they own go up, investment funds often cut back on their stakes in those stocks so that the weights of their holdings don’t go up too much.
As Tesla stock went up in price, Wood’s ETF sold some of its holdings to rebalance its portfolio. However, it let the value of its Tesla holdings rise sharply, which suggests Wood is becoming more bullish.
After going up 2.3% on Monday, Tesla’s stock shot up 4.7% in the morning market on Tuesday. It was selling 6.1% lower than its all-time high of $479.86 on December 17.
The Ark Innovation ETF’s Tesla stake would be worth $1.14 billion after Tuesday’s gain.
The Ark Innovation ETF holds 9.22% of Roku Inc. stock, which is worth $626.8 million at the moment. This makes it its second-largest investment.
The third-biggest holding is Coinbase Global Inc. stock COIN -2.20%, which is worth $574.8 million at the moment and has an 8.3% yield.
The ETF has gone up 3.3% in December, while the S&P 500 index (SPX -0.09%) has gone down 0.5%. The S&P 500 has gone up 4.7% and the ETF has gone up 26.3% in the last three months.
