Cathie Wood and her company Ark Invest on Tuesday abandoned part of their You’re here (TSLA) holdings and loaded on the budding drone maker Archer Aviation (ACDH). Tesla shares rose early Wednesday while ACHR shares rose modestly.
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Cathie Wood’s ARKK Stock Picking Strategy Explained
Wood and Ark Invest sold a total of 62,867 shares of Tesla stock worth $14.538 million on Tuesday based on the closing price of 231.26, according to the firm’s daily trading updates. Wood sold more than 56,000 shares of the ARK Innovation ETF (LEAF) while the remainder was unloaded from the ARK Next Generation Internet ETF (ARKW).
Tesla shares climbed 10.2% on Tuesday as Elon Musk’s electric vehicle company beats expectations for second-quarter deliveriesdespite deliveries down 4% compared to last year.
Eyes on the sky
Meanwhile, Wood and ARK bought 406,912 shares of Archer Aviation stock worth $1.51 million on Tuesday, based on the closing price of $3.72.
San Jose-based Archer is developing electric vertical takeoff and landing (eVTOL) vehicles for urban environments, with the goal of creating a robust air taxi service.
Archer Aviation on Tuesday secured an additional investment of $55 million Since Stellantis (STLA) through a strategic financing agreement. Stellantis invested $110 million in Archer in 2023 through a series of open market share purchases and investments through the strategic agreement. The investment comes after Archer completed a key test flight on June 8 for his Midnight plane.
The company on On June 5, the company announced that it had received FAA certification to begin operating a commercial airline. And on June 17, Archer has reached an agreement with Signature Aviationgiving it access to the world’s largest network of private aviation terminals. Under the agreement, Archer plans to launch air taxi services at United Airlines (UAL) hubs at Newark and Chicago O’Hare International Airports starting in late 2025. The deal also gives Archer access to takeoff and landing sites in New York, Los Angeles, San Francisco and Texas.
Signature Aviation operates more than 200 private terminals worldwide. Archer plans to expand its network as aircraft availability increases, the company said.
Archer followed up that announcement on June 20 by revealing projects for an air mobility network at five sites in the San Francisco Bay Area.
Wood and ARK also added 3,788 shares of BLADE Air Mobility (BLDE), another company trying to expand its urban air mobility network. BLADE offers a mix of helicopter and charter jet services, rather than eVTOLs. But the company says it is preparing to adopt electric vehicle aircraft.
Other eVTOL drone manufacturers include Eve Air Mobility (EVEX), a subsidiary of the Brazilian aircraft manufacturer Embraer (ERJ). And based in China EHang Holdings (EH) is developing an unmanned air taxi service.
Tesla stock, ACHR stock
Tesla shares rose more than 2% before the market opened Wednesday. TSLA shares are on track for their seventh straight daily gain if the initial move holds.
Tesla shares are down 6.9% in 2024 through Tuesday.
ACHR shares rose 2.2% Wednesday morning. Archer shares jumped 8.8% Tuesday to bounce above their 50-day moving average.
However, ACHR stock has fallen 39.4% this year through Tuesday’s close.
BLDE shares traded lower Wednesday morning after gaining 2.7% Tuesday. BLADE shares have lost 3.9% this year.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
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