Ark Invest, run by Cathie Wood bought roughly $5 million worth of General Motors Corporation (NYSE:GM) shares on Monday, adding to the position she initiated in May.
What Happened: Ark, through its ARK Autonomous Technology & Robotics ETF (BATS:ARKQ) bought 120,004 shares of GM. At Monday’s closing price of $41.39, the purchase was worth $4.97 million.
Wood had previously shunned legacy automakers on the pretext that they did not have the genes to make it big in the electric vehicle arena. She instead preferred throwing her weight behind EV market leader Tesla Inc. (NASDAQ:TSLA).
The money manager, however, did express her appreciation for GM CEO Mary Barra’s focus on the company’s Cruise self-driving unit.
See Also: Cathie Wood Says US Already In Recession, Slams The Fed For Worrying More About Legacy Than Economy
Wood first bought into the legacy automaker in May this year. Ahead of Monday’s buy, GM accounted for 0.54% of ARKQ by virtue of the 142,929 shares of the exchange-traded fund held in the company. In comparison, Tesla is the top holding of ARKQ, accounting for 12.37% of the ETF.
Ark Invest also holds Tesla in its flagship ETF, the ARK Innovation ETF (NYSE:ARKK), and the ARK Next Generation Internet ETF (NYSE:ARKW).
Why It’s Important: Wood’s positive stance on GM aligns with Wedbush analyst Daniel Ives’ recent comments that the company’s vertical integration capabilities and conversion of its massive customer base to EVs over the coming years present a transformation opportunity.
GM has an opportunity to lay the groundwork and ultimately convert 20% of its massive customer base to EVs by 2026 and north of 50% by 2030, Ives had said.
Price Action: GM closed Monday’s session 3.55% higher at $41.39, according to Benzinga Pro data.