Cathie Wood Trims $147M From Tesla Stake And Initiates Position In This Rival EV Maker

Cathie Wood-led Ark Investment Management on Friday bought shares in the U.S. listed Chinese electric vehicle Nio Inc NIO, a first for the popular investment firm that has built significant stakes in global EV leader Tesla Inc TSLA and has been piling up shares in local rivals Xpeng Inc XPEV and BYD Co BYDDY.

Ark Invest swooped up 420,057 shares — estimated to be worth $8.36 million based on Friday’s closing — in Nio on the dip.

Nio stock closed 9.4% lower at $19.9 a share on Friday. The stock is down 40.5% year-to-date.

The Shanghai, China-based Nio’s founder and CEO William Li on Friday told investors that the EV maker aims to break even in 2024 for the full year and will more than double research & development spending this year towards new product development.

Nio reported a loss of 16 cents per share on an adjusted basis in the three months ended Dec. 31 and revenue of $1.5 billion. 

Analysts' consensus was a loss of 21 cents per share on revenues of $1.53 billion, according to Benzinga Pro.

Nio said it would deliver 25,000 to 26,000 vehicles in the first quarter. The EV maker has reported deliveries of 9,652 vehicles in January and 6,131 vehicles in February amid slower sales during the Chinese New Year and production halt for upgrading the plant.

See Also: Nio's William Li Says EV Maker On Track To Break Even In 2024 Amid Rising Chip, Raw Material Prices

The St. Petersburg, Florida-based investment firm also booked some profit in the Elon Musk-led company’s stock. Ark Invest sold 145,977 shares —estimated to be worth $147.5 million — in Tesla.

Tesla shares have risen this week to once again breach the $1 trillion market cap after the company opened its Giga Berlin site for business.

Wood, a Tesla bull, has previously said she estimates Tesla stock to hit the $3,000 mark by 2025.

Tesla stock closed 0.3% lower at $1,010.6 a share on Friday.

Ark Invest held 1.71 million shares — worth $1.73 billion— in Tesla, prior to Friday’s trade.

See Also: Cathie Wood Makes First Buy In An EV Maker In 2022 — And It's Not Tesla

Wood's firm also topped 80,000 shares — estimated to be worth $4.36 million — in Shenzhen, China-headquartered BYD, a company backed by Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B) Chairman Warren Buffett.

BYD, which started off as a battery company, has quickly ramped up its EV offerings. In February, BYD sold over double the number of electric vehicles than Nio, Xpeng and Li Auto combined.

Ark Invest held 331,334 shares and 928,648 shares in BYD and Xpeng, estimated to be worth $19 million and $27.2 million respectively, prior to Friday’s trading.

Photo: Courtesy of Nio