Ark Invest’s Cathie Wood has been bullish on Tesla and other electric vehicle (EV) stocks, and a recent move shows her shifting her portfolio towards Chinese EV maker, NIO.
Wood sold 145,977 shares in Tesla and purchased 420,057 shares in NIO on Friday, March 25, according to The Motley Fool.
ARKK sold 117,857 Tesla shares (0.95% of the ETF), ARKQ sold 16,429 shares (0.98% of the ETF) and ARKW sold 11,690 shares (0.48% of the ETF) last week.
Tesla is still Ark Invest’s largest holding, with the stock representing around 7.28 percent of the firm’s exchange-traded fund (ETF) portfolio.
Despite Tesla’s current grasp on the EV market, some have predicted that NIO will become the top-selling automaker in China — the world’s largest auto market.
First NIO ET7 Cars Roll off Production Line in China [VIDEO] https://t.co/SmjnoKWzPx
— TeslaNorth.com (@RealTeslaNorth) March 24, 2022
NIO is only set to deliver 25,000-26,000 vehicles in Q1 this year, but once the company can reach profitability and ramp up production, many see the automaker as a potential rival to Tesla, or close to it. NIO recently started deliveries of its ET7 sedan and is also selling vehicles in Europe.
Either way, knowing how Wood and Ark Invest tend to sell Tesla at high share prices and buy the dips, like they did in January, this probably isn’t a symbolic move away from Tesla towards NIO, but rather an attempt to capture more of the market.
At the time of writing, Tesla’s shares are trading at $1,102.87 (+$3.40), up 0.31 percent from Tuesday’s close.
NIO’s shares are trading for $23.74 (+$1.88), up 8.57 percent from the market’s close on Tuesday.
