ARK Invest stepped in to acquire around 160,151 Tesla shares worth close to $59.9 million, after Tesla’s stock dropped nearly 15% on disappointing quarterly results. At the same time, the fund significantly trimmed its Figma holdings and boosted its position in Circle Internet Group.
Tesla’s Quarterly Performance and Stock Reaction
Tesla’s second-quarter operating profit came in at roughly $400 million, missing Wall Street’s consensus by about $1.3 billion. The earnings miss spurred a sharp selloff, dragging Tesla's shares down almost 15% in a single session. Despite this, ARK Invest took advantage of the lower prices to accumulate shares across four of its ETFs: ARK Innovation, ARK Space & Defense Innovation, ARK Next Generation Internet, and ARK Autonomous Technology & Robotics.
Even with recent weakness, Tesla remains ARK’s largest position, comprising nearly 10% of the ARK Innovation ETF's assets. This comes in spite of Tesla’s stock retreating 29% year-to-date and a 3% dip over the past twelve months. Early trading on Friday saw the stock dip an additional 0.6%, hovering near $317.86.
Underlying Challenges Slow Tesla’s Profit Growth
Tesla delivered about 480,000 vehicles in Q2, a 25% rise from last year, reflecting strong volume growth. Yet, the company’s ability to maintain pricing power has weakened, and increasing operating costs have squeezed margins. Tesla now trades at an eye-watering forward price-to-earnings ratio exceeding 150, far above the roughly 24 times average for other top growth stocks in the so-called Magnificent Seven group. This valuation premium has made investors wary.
The company's recent efforts include launching a robotaxi service that debuted in Austin, Texas in June 2025 and expanded to other cities, though consumer uptake has been limited so far.
Portfolio Moves Beyond Tesla
Alongside Tesla, ARK reduced its Figma shares by 976,368 units across the ARKK and ARKW ETFs, generating nearly $21 million. This fits a pattern of steadily cutting back exposure to Figma in recent months. ARK also added about 130,136 shares of Circle Internet Group, investing around $8.6 million to increase its stake.
Additional portfolio adjustments included trimming bets on Robinhood, Deere, Twist Bioscience, and 10X Genomics. This active reshuffling reflects ARK’s dynamic approach as it rebalances amid market volatility.
