Cathie Wood Sells $38 Million Tesla Stock, Buys $50 Million Broadcom Shares

TLDR

• Cathie Wood’s ARK Invest sold 86,136 Tesla shares worth $38.5 million on January 14, despite Tesla holding the top position in ARKK ETF at 10.68% weight
• ARK purchased 143,089 Broadcom shares for $50.7 million across ARKK and ARKW funds following a 4.1% price drop
• Tesla stock fell 1.8% after CEO Elon Musk announced FSD would stop being sold outright after February 14, becoming subscription-only
• Broadcom shares dropped 4.1% after Chinese authorities warned domestic firms away from 12 U.S. and Israeli software vendors, including Broadcom’s VMware
• ARK also bought $1.7 million in Klarna shares and sold positions in Taiwan Semiconductor ($6.4 million) and Unity Software ($5.8 million)

Cathie Wood’s ARK Invest made major portfolio changes on January 14, selling a large portion of Tesla stock while buying heavily into Broadcom. The moves came as both companies faced separate challenges that pushed their share prices down.

Broadcom Inc., AVGO

ARK Innovation ETF sold 86,136 Tesla shares valued at $38.52 million. This represents a major reduction in the fund’s holdings of the electric vehicle maker. Despite the sale, Tesla remains the largest holding in ARKK with a 10.68% weight and a value of $805.74 million.

The Tesla sale came on a day when the stock dropped 1.8%. CEO Elon Musk posted on X that Tesla would stop selling Full Self-Driving technology outright after February 14. After that date, FSD would only be available through a monthly subscription.

ARK used some of the funds to buy into Broadcom at a lower price. The firm purchased 143,089 Broadcom shares across its ARKK and ARKW funds for $50.74 million. This came after Broadcom shares fell 4.1% in trading.

Broadcom Faces China Software Restrictions

The Broadcom stock decline followed news that Chinese authorities told domestic companies to avoid about 12 U.S. and Israeli software vendors. The warning cited national security concerns. Broadcom’s VMware software was specifically mentioned in the guidance.

Broadcom acquired VMware in a $69 billion deal. The company designs semiconductors and infrastructure software used in AI, networking, and cloud computing. Wood appears to view the price drop as a buying opportunity.

The ARKK and ARKW funds made the Broadcom purchases. Wood has a history of buying stocks when prices dip, betting on long-term growth potential. The $50.7 million investment represents one of the larger single-day purchases for ARK.

Other Portfolio Changes

ARK Next Generation Internet ETF sold 19,310 shares of Taiwan Semiconductor Manufacturing for $6.39 million. The same fund also sold 126,437 Unity Software shares worth $5.77 million. Smaller sales included positions in Kratos Defense, Teradyne, Natera, Intuit, and Global-E Online.

On the buying side, ARK added 56,993 shares of Klarna Group for $1.71 million. Klarna operates in the buy now, pay later space and competes with companies like Affirm and Afterpay. The Swedish fintech company has been expanding its international presence.

ARK also purchased 72,320 shares of Kodiak AI for $679,084. Kodiak develops autonomous trucking technology. The purchase fits with Wood’s focus on innovative transportation technologies.

The trades show ARK moving money between different tech sectors. The firm reduced exposure to some high-growth names while adding to semiconductor and fintech positions. Wood appears to be balancing the portfolio across different areas of technology.

Tesla still represents ARK’s largest single holding even after the $38.5 million sale. The stock has been a core part of Wood’s investment strategy for years. The partial sale represents a shift but not a complete exit from the position.

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