Cathie Wood's GM Novelty Wearing Off? Ark Sheds About One-Fourth Of Stake A Year After Taking A Fresh Position In Automaker

Cathie Wood's Ark Invest on Thursday disposed off a chunk of shares of legacy automaker General Motors Corp. GM.

What Happened: Ark, through its Ark Autonomous Technology & Robotics ETF ARKQ sold 72,519 shares of GM, valued at $2.85 million based on Thursday's closing price of $39.26.

Ark first took a position in GM in May 2022, when it bought 158,187 shares of the automaker. The fund  boosted its stake in the legacy automaker over the year and the purchases were as follows:

• Sep. 19, 2022: 120,004
• Nov. 11, 2022: 70,226
• Nov. 14, 2022: 60,893

The cumulative purchases of Ark totaled 409, 310 shares.

Updated ARKQ's holdings show that the fund now owns 303,735 shares valued at $11.93 million.  The stock accounts for 1.05% of the exchange-traded funds portfolio. Tesla, Inc. TSLA is the fund's top holding and makes up 13.93% of the portfolio.

ARKQ has liquidated about 25% of the GM shares it acquired in 2022.

See Also: Best Auto Manufacturer Stocks

Why It's Important: GM is a distant second to Tesla in the U.S. electric vehicle market but the company has adopted an all-out strategy on transitioning to EVs. The company has exposure to autonomous driving technology through its Cruise subsidiary. Cruise develops autonomous car technology and is testing a robotaxi service.

Incidentally, much of Ark’s future valuation of Tesla is premised on the EV pioneer’s yet-to-be-launched robotaxi service.

GM ended Thursday’s session up 0.08% at $39.26, while Tesla plunged 9.74% to $262.90, according to Benzinga Pro data.

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