Cathie Wood has cut positions at Tesla. What is she betting on now?

Cathie Wood's ARK Invest funds were reducing investments in Elon Musk's electric car maker Tesla in January while building up positions in shares of semiconductor giant Broadcom, which was recently added to ARK's portfolio, Barron's noted.

Despite the fact that Cathie Wood is known as a staunch supporter of electric car manufacturer Tesla, her funds have recently been selling shares in Elon Musk's company, writes Barron's. At issue are transactions by ARK Innovation fund, which reduced its position in Tesla in January by selling 86,139 shares of the company. This is the largest security in the fund's portfolio by weight, Barron's points out, noting that despite the active sales, this doesn't mean ARK has completely exited the position: Tesla remains the largest asset in several of ARK's funds. As of Jan. 15, ARK Innovation owned 1,728,504 shares of Tesla, nearly 10% of the portfolio.

The reasons for such transactions in ARK did not disclose. Tesla shares have been showing volatile dynamics since the beginning of 2026. On January 14, CEO Elon Musk announced that Tesla will offer its Full Self-Driving (FSD) autonomous driving system - a key feature of Tesla electric cars - only on a subscription basis. That sent the company's stock price down 1.8%. At the pre-market on January 16, Tesla securities were growing by 0.4%.

At the same time as reducing her investment in Tesla, another Cathie Wood fund, the ARK Next Generation Internet ETF, bought securities of semiconductor maker Broadcom after starting to build a position in the company last week, according to the fund's trading disclosure documents(pdf.). The ETF increased its holding by 31,308 shares of Broadcom, bringing its holdings to 62,545 securities as of Jan. 16, Barron's emphasizes . Also adding Broadcom securities was another ARK Invest fund, the ARK Innovation ETF. It bought 111,781 shares of the company, forming a new position in the chipmaker.

ARK bought Broadcom securities on the drawdown, Barron's specifies. On January 14, the company's shares fell by 4.2% amid a large-scale sell-off of securities of the technology sector. Pressure on the company's shares intensified on the same day after the news that China banned software from a number of American and Israeli companies, including Broadcom. Shortly thereafter, Broadcom's securities rebounded from the drop and rose 2% to $346.73 on Jan. 15. At the premarket on January 16, Broadcom shares added 1.05%.

According to MarketWatch, the vast majority of analysts are positive about Broadcom's prospects, with 50 experts recommending buying the company's stock and only three advising holding.

Other notable changes in ARK funds include the sale of 19,310 shares of Taiwan Semiconductor Manufacturing (TSMC) following the company's Jan. 15 earnings release. At the close of that transaction, the ARK Next Generation Internet ETF held 164,437 American Depositary Shares of TSMC for about $53.8 million, Barron's writes, specifying that, as of Jan. 14, that position was the 13th largest in the fund's portfolio. TSMC's American depositary receipts rose 0.9% on the pre-market on January 16.

Another fund, ARK Fintech Innovation ETF, bought 56,993 shares of Klarna Group, a buy-now-pay-later service that will go public at the end of 2025. The fund returned 29% last year, outperforming the Nasdaq Composite index's 20% gain. At the pre-market on January 16, the company's securities were up 1.4%.

This article was AI-translated and verified by a human editor