invest ark operated by Cathie Wood bought about $5 million worth General Motors Corporation GM shares on Monday and adds them to the position initiated in May.
What happened: ark, through his ARK Autonomous Technology & Robotics ETF ARCQ bought 120,004 shares of GM. At a closing price of $41.39 on Monday, the purchase was valued at $4.97 million.
Wood had previously avoided older automakers under the pretense that they didn’t have it Genes to make it big in the electric vehicle arena. She instead preferred to throw her weight behind the EV market leader Tesla Inc. TSLA.
However, the wealth manager expressed her appreciation for GM’s CEO Mary Barras Focus on the company’s self-propelled Cruise unit.
wood shopped first the legacy automaker in May of this year. Prior to Monday’s purchase, GM accounted for 0.54% of ARKQ due to the 142,929 exchange-traded fund shares held by the company. In comparison, Tesla is ARKQ’s largest holding, accounting for 12.37% of the ETF.
Ark Invest also holds Tesla in its flagship ETF, the ARK Innovation ETF ARKKand the ARK Next Generation Internet ETF ARKW.
Why it matters: Wood’s positive stance on GM aligns with recent comments from Wedbush analyst Daniel Ives that the company’s vertical integration capabilities and the move of its massive customer base to electric vehicles present an opportunity for transformation in the coming years.
GM has the opportunity to lay the groundwork and eventually convert 20% of its huge customer base to electric vehicles by 2026 and more than 50% by 2030, Ives had said.
Price promotion: GM closed Monday’s session up 3.55% at $41.39 Gasoline Pro Data.
