Cathie Wood Doubles Down On Tesla Amid Elon Musk's Feud With Trump, Sells $3 Million Worth Of Coinbase Stock

On Tuesday, Cathie Wood-led Ark Invest made significant trades involving Tesla Inc. and Coinbase Global Inc. . These trades reflect Ark’s strategic positioning amid ongoing market developments. The transactions occurred as Tesla faced a dip in share price due to external factors, while Coinbase dealt with legal challenges.

The Tesla Trade

Ark Invest’s flagship fund, ARK Innovation ETF ARKK, acquired 43,126 shares of the Elon Musk-led company, while ARK Next Generation Internet ETF ARKW added 13,242 shares to its portfolio. The total value of these purchases, based on the latest closing price, amounts to $16.95 million. Tesla shares ended the day at $300.71.

Despite a recent decline in Tesla’s stock, driven by Musk’s public disagreement with former President Donald Trump over a federal spending bill, Ark remains bullish on Tesla’s long-term potential.

Meanwhile, Wedbush analyst Dan Ives has reiterated his optimistic outlook on Tesla, highlighting it as a leading player in the physical AI sector. Ives projects a $2 trillion valuation for the company, excluding potential earnings from its humanoid robot, Optimus. Tesla is Ark Invest’s largest holding, making up 9.7% of its portfolio by weight. The market value of Ark’s Tesla shares stands at $664.7 million.

The Coinbase Trade

In contrast, Ark Invest reduced its stake in Coinbase by selling 9,116 shares through ARKW. This decision comes as Coinbase faces legal hurdles, with the Supreme Court denying an appeal to prevent the IRS from accessing user data. On Tuesday, Coinbase shares closed at $335.33. The Ark transaction was valued at $3.06 million.

The legal head of Coinbase, a platform that allows trade in cryptocurrencies like Bitcoin BTC/USD and Ethereum ETH/USD, has vowed to continue the fight, underscoring the ongoing challenges the company faces in navigating regulatory landscapes.

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