On Wednesday, Cathie Wood‘s Ark Invest made notable trades involving  Tesla Motors and  Tempus AI. These trades come amid significant developments for both companies, with Tesla’s insider sales raising eyebrows and Tempus AI facing scrutiny from short sellers.

The Tesla Trade

Ark Invest’s flagship fund,  ARK Innovation ETF, executed a sale of 15,817 shares of Tesla on Wednesday. Tesla shares ended the day at $356.90, valuing the transaction at $5.6 million.

The Ark transaction aligns with a broader trend of insider sales at Tesla, reported on the same day. Two board members of Tesla have reportedly sold nearly $200 million worth of shares ahead of the company’s anticipated robotaxi launch in Texas. The insider sales, the latest being from Ira Ehrenpreis and Kimbal Musk, could signal potential concerns, especially as Tesla grapples with challenges such as a 13% drop in deliveries and increasing inventory levels. The sale of Tesla shares by Ark Invest adds to the ongoing narrative surrounding the electric vehicle giant’s current market position.

Wood dumped $9.9 million worth of Tesla shares on Tuesday, even after CEO Elon Musk said that he is committed to spending “24/7” at work. On Wednesday, Musk officially announced that his “scheduled time” as special government employee had come to an end.

The Tempus AI Trade

Ark Invest made a significant move by purchasing shares of Tempus AI Inc. across its  ARK Genomic Revolution ETF and ARKK funds. The ARKG fund acquired 34,299 shares, while ARKK added 216,781 shares to its portfolio. Tempus AI shares ended Wednesday at $53.20, the total transaction was valued at $13.36 million.

This acquisition comes at a time when Tempus AI is under scrutiny from Spruce Point Capital Management, a short seller that has raised concerns about the company’s management and accounting practices. The short seller’s report, titled “The Tempest Surrounding Tempus AI,” has contributed to a decline in Tempus AI’s stock price. Despite these challenges, Ark Invest’s purchase indicates a continued belief in Tempus AI’s potential within the AI sector.

Other Key Trades:

• Sold 319,981 shares of  Adaptive Biotechnologies Corp from ARKG.

• Sold 67,261 shares of  Roblox Corporation from ARKK.

• Bought 134,023 shares of  Intuitive Machines in ARK Autonomous Technology & Robotics ETF.

• Sold 640,202 shares of  3D Systems from ARK Autonomous Technology & Robotics ETF.

• Bought 179,266 shares of  Nextdoor Holdings in ARK Next Generation Internet ETF.