The WeRide trade follows Ark’s earlier reduction in Chinese stock exposure during Beijing’s regulatory crackdown in 2021.
- Ark increased its WeRide exposure through multiple recent share purchases totaling nearly 700,000 shares.
- The accumulation comes as the firm rebuilds positions in select Chinese technology and autonomous driving companies.
- Tesla’s portfolio weight at ARKQ has eased, with other holdings now ranking ahead by allocation.
Cathie Wood-led Ark Investment Management bought 111,400 shares of WeRide on Wednesday, extending the firm’s renewed exposure to Chinese technology stocks.
The purchase follows additional buying earlier this week, bringing Ark’s disclosed WeRide purchases over the past three trading days to at least 688,400 shares.
Ark Returns To Select Chinese Tech
The WeRide trade comes as Ark gradually rebuilds positions in Chinese companies after sharply reducing exposure during Beijing’s regulatory crackdown in 2021.
In December, trading disclosures showed the Ark Innovation ETF increased its stake in Baidu to about 614,550 shares, valued at roughly $79.9 million at the time, representing around 1% of the fund’s holdings. WeRide has also featured among Ark’s recent China-linked additions as the firm refocuses on AI and autonomous driving.
WeRide Builds Global Presence
WeRide, a Guangzhou-based autonomous driving company, operates robotaxi and self-driving services and has expanded its fleet to more than 1,000 vehicles, with driverless operations in cities including Beijing and Guangzhou.
In November, the company raised HK$2.39 billion, or about $308 million, through its Hong Kong share sale, becoming one of several U.S.-listed Chinese firms pursuing secondary listings amid ongoing delisting concerns. WeRide said proceeds from the offering would be used to advance autonomous-driving technology, scale robotaxi commercialization and support overseas expansion.
Citi Flags Near-Term Catalyst
On Monday, Citi added a “90-day upside catalyst watch” on WeRide while maintaining a ‘Buy’ rating and a $15.3 price target, which implies about 73% upside from current levels.
Citi said potential upside could come from Waymo’s possible financing round in the first quarter at an implied valuation of 280 times 2025 price-to-sales, which the firm said could re-rate WeRide’s valuation, currently equating to 34 times 2025 price-to-sales. The brokerage also said it expects improving sentiment around WeRide’s possible entry into the Southbound Stock Connect in June.
Tesla’s Position Inside Ark Shifts
Ark’s increased activity in WeRide comes as Tesla’s position in the Ark Autonomous Technology & Robotics ETF (ARKQ) has eased. Recent portfolio disclosures show Kratos Defense & Security narrowly overtaking Tesla as Ark’s largest holding in ARKQ, with Tesla now ranking second, followed by Teradyne and Rocket Lab. Tesla remains the top holding on the ARK Innovation ETF (ARKK), which is up just over 2.7% this year.
While Ark continues to hold a sizable Tesla position, the firm recently said its long-term Tesla thesis centers on robotaxis rather than Full Self-Driving subscriptions.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment for WeRide was ‘bearish’ amid ‘high’ message volume.
WeRide’s U.S.-listed stock has declined 31% over the past 12 months.
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