Cathie Wood’s ARK Invest has made a bold portfolio move, trimming its position in Tesla while doubling down on fintech and AI-focused firms like Circle and Alibaba.
Quick Summary (TLDR):
- ARK Invest sold $30.3 million worth of Tesla shares as China sales slumped sharply.
- The firm purchased 353,328 shares of Circle, totaling $30.5 million, after the company posted a 202% surge in net income.
- Alibaba stock was also added to ARK’s funds, showing growing investor confidence in AI and cloud services.
- The trades highlight ARK’s strategy shift toward disruptive technology firms with strong earnings and growth potential.
What Happened?
Cathie Wood’s ARK Invest made significant adjustments across its ETFs on Wednesday, selling a large volume of Tesla stock while purchasing a substantial stake in Circle and adding to its Alibaba holdings. The shift underscores ARK’s confidence in stablecoin infrastructure and emerging tech amid market volatility.
ARK Reduces Tesla Holdings Amid China Slump
ARK Invest sold 70,474 shares of Tesla, worth around $30.3 million, across its ARK Innovation (ARKK) and Next Generation Internet (ARKW) ETFs. Tesla’s stock closed at $430.60, down 2.05%, as the company continues to struggle with declining demand in China.
Key data from China’s auto market shows:
- October deliveries in China fell 36% year-over-year to just 26,000 units.
- Total deliveries from Tesla’s Shanghai factory, including exports, dropped 9.9% to 61,497 units.
- Year-to-date, Tesla has delivered 40,000 fewer vehicles in China compared to last year.
ARK had already been trimming its Tesla position earlier in the week, selling an additional $2.4 million on Monday and a small tranche of 789 shares on Tuesday.
ARK Pounces on Circle Despite Stock Drop
At the same time, ARK invested heavily in Circle Internet Group, acquiring a total of 353,328 shares across three of its ETFs:
- 245,830 shares via ARKK
- 70,613 shares through ARKW
- 36,885 shares in ARKF
The move came despite Circle’s stock falling 12.2% to $86.30, as investors reacted with skepticism following strong Q3 earnings.
Circle’s Q3 results included:
- Net income of $214 million, up 202% year-on-year
- Total revenue and reserve income of $740 million, a 66% increase
- USDC circulation hit $73.7 billion, up 108%
- $9.6 trillion in on-chain transaction volume
Financial analysts at William Blair responded to the earnings with optimism, stating they encourage investors to build positions during weakness. They rated the stock as “outperform”, citing Circle’s growing influence in the stablecoin ecosystem.
The firm also noted potential risks, such as:
- Regulatory hurdles
- Intensifying competition
- Infrastructure gaps in stablecoins
- Market pressure from falling interest rates
Circle recently launched the Arc public testnet, its new Layer 1 blockchain focused on stablecoin and programmable finance, and is exploring the possibility of a native token for the Arc ecosystem.
🔥 ARK Invest just scooped up $30.5M worth of Circle (CRCL) shares across several of its ETF’s — buying the dip even as the stock slid 12.2% to $86.30.
— Ark Quant Crypto (@ArkQuantCrypto) November 13, 2025
📊 Circle’s Q3 was a monster:
• $740M revenue (+66% YoY)
• $214M net income (+202% YoY)
• USDC supply: $73.7B (+108% YoY)… pic.twitter.com/l3qMl36XJp
ARK Doubles Down on Alibaba
ARK also increased its position in Alibaba Group, buying:
- 4,878 shares via ARKK
- 1,396 shares through ARKW
- 364 shares via ARKF
The trade was valued at around $1.05 million. Alibaba, despite a modest 1.8% stock decline on the day, has risen 98% year-to-date, fueled by growth in AI infrastructure and instant-commerce strategies.
ARK had previously purchased $25.36 million in Alibaba shares earlier in the week, suggesting strong long-term confidence in the company’s tech direction.
Daily Research News Takeaway
I see this as a clear signal that Cathie Wood is recalibrating ARK’s vision for the future. Tesla, once ARK’s flagship bet, is showing signs of vulnerability, especially in key markets like China. At the same time, Circle is quietly building the backbone for digital finance, with real earnings and an expanding footprint. Buying on a 12% dip after blockbuster earnings? That’s a power move. And Alibaba, with its AI push and cloud dominance, is proving it’s not to be counted out. This is more than just portfolio tweaking. It’s ARK reshaping its tech thesis for 2026 and beyond.
