PCAR: New position at ARK

The longtime truck manufacturing company has recently inked an agreement with Aurora to develop, test, and commercialize autonomous trucks

The ARK Funds actively managed ETF family initiated a new position this past week in PACCAR (NASDAQ:PCAR). As of yesterday, ARKK held almost 500,000 shares of PCAR, which has had a nice price run in the last few days.

PCAR was also up considerably in the aftermarket yesterday, potentially driven by ARK’s portfolio transparency release.

The company has a long history and has been around since 1905. It currently spots a market cap of $35 billion, and pays a ~1.3% annual dividend. Exceptionally strong YTD 2021 performance of +15% has been mostly driven by the market sentiment around the company’s recent agreement with Aurora to develop, test, and commercialize autonomous Peterbilt and Kenworth trucks.

Given PCAR’s strong positioning in the North American trucking market, this is an important collaboration to watch. Kenworth T680 and Peterbilt 579 trucks utilizing the Aurora Driver technology are expected to be deployed across North America in the next few years.

Clearly, the portfolio managers at ARK are bullish on PCAR as a beneficiary of this collaboration, and it may be an interesting opportunity to invest alongside these sophisticated investors who called it right on other autonomous vehicle/EV plays like TSLA.