Cathie Wood's ARK Sells Tesla, Buys More Archer Aviation Stock

What Happened:

Cathie Wood's Ark Invest sold 75,000 Tesla (NASDAQ:TSLA) shares and almost doubled its Archer Aviation (NYSE:ACHR) shares in the third quarter.

The company's flagship fund, ARK Innovation ETF (NYSE:ARKK), sold 74,992 Tesla shares on Sept. 28, according to the fund's daily trading update.

The sale comes as Tesla's stock has come under pressure in recent months amid concerns about the company's valuation and competition from legacy automakers.

Why It Matters:

The sale of Tesla shares is a notable shift for Ark Invest, which has been a vocal supporter of the electric car maker.

However, the purchase of Archer Aviation shares suggests that Wood still believes in the long-term potential of electric aviation.

Archer Aviation is a startup that is developing an electric vertical takeoff and landing (eVTOL) aircraft.

What's Next:

It remains to be seen whether Ark Invest's decision to sell Tesla shares and buy more Archer Aviation shares will pay off in the long run.

However, the move is a sign that Wood is willing to make changes to her portfolio based on her investment thesis.

Investors should keep an eye on Ark Invest's future moves to see if it continues to sell Tesla shares and buy more Archer Aviation shares.