In June, Ark Invest's flagship Innovation ETF owned around 3.5 million shares of Tesla (TSLA) -), a holding that was weighted at more than 12.5% of the fund. The firm's Tesla holding was worth more than $1 billion in August. A few weeks later, the holding had fallen to 3.2 million shares, worth slightly under $900 million and weighted at 11.46% of the fund.
Ark Innovation went on to sell millions of dollars worth of Tesla stock throughout September, a theme that has persisted into October. And in the days leading up to Tesla's Oct. 18 earnings, Wood sold thousands of shares.
By Oct. 17, the fund's Tesla holding had fallen to 2.7 million shares, worth $682.3 million and weighted at around 10% of the fund. As of Oct. 23, the holding had fallen to 2.6 million shares, worth $549.8 million and weighted at only 8.9% of the fund, a steep decline from numbers earlier in the year.
Related: Cathie Wood's super bullish Tesla stance tested after latest earnings
Despite Ark Invest's ultra-bullish standpoint on Tesla, and despite the firm's apparent effort to keep its Tesla holding contained at around 10% of the fund, Ark has sold nearly a million Tesla shares over the past several months, cutting its exposure down in the leadup to a lackluster third-quarter earnings report.
In the wake of falling margins, price cuts with no end in sight and lack of clarity around Cybertruck deliveries, in addition to a miss on production and delivery numbers for the quarter, Tesla shares plummeted 16% last week.
Lifting slightly Monday morning, Tesla shares are still up around 70% for the year even after last week's big loss. But the company's stock remains down around 30% from its 2023 high of $299.
Though the electric vehicle leader remains a profitable, prominent juggernaut in the EV sector, Tesla's EPS have been falling recently, with third-quarter earnings down 37% compared to the year-ago period.
Unlike the many analysts who cut their Tesla price targets in response to the less-than-positive earnings, Wood is not budging on her bet that Tesla shares will hit $2,000 by 2027.
It's not just Tesla
Tesla isn't Ark's only holding that has been a bit disappointing lately.
Shares of Zoom (ZM) -), the ETF's third-largest holding, are down around 9% for the year and are off their 2023 highs by 27%.
Related: Why Tesla stock is crumbling — and where it could go next
Ark Innovation owns nearly 8 million shares of Zoom, worth around $491.5 million and weighted at 7.97% of the fund.
And Coinbase (COIN) -), the ETF's second-largest holding, is down around 35% from its 2023 highs, though shares in the company are still up around 120% for the year. Ark Innovation owns around 7 million shares of Coinbase, worth $526.4 million and weighted at 8.54% of the fund, a weighting that is now nearly as prominent as the fund's Tesla holding.
After hitting 52-week highs of $51.33 in mid-July, Ark Innovation (ARKK) -) has fallen steadily, opening Monday at $35.67. The ETF is up around 17% for the year.
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