tsla: Despite staying bullish, Cathie Wood of ARK Invest sells Tesla shares — what’s the reason?
As reported by Investing.com, ARK sold 87,993 Tesla shares across both ETFs, worth approximately $39.3 million in total. This sale surprised many investors because Cathie Wood had always been very positive about Tesla. Experts say the sale does not mean ARK has lost faith in Tesla’s future. The real reason for the sale is not a change of heart about Tesla, but portfolio management.
Why did ARK sell Tesla shares?
As TipRanks notes, Tesla is the largest holding in both the ARKK and ARKW funds. Tesla accounts for more than 10% of total investments in these funds. Fund managers often sell even their favorite stocks to rebalance and reduce risk. ARK Invest is still aggressively bullish on Tesla shares. ARK believes Tesla’s biggest future value will come from autonomous driving technology and robot taxis. ARK has set a price target of $2,600 for Tesla by 2029.
This target suggests Tesla could rise over 450% from current levels. ARK’s forecast means Tesla could grow at around 50% per year for the next four years, as TipRanks notes. This long-term target is very different from most Wall Street analysts, who typically give one-year price targets. The current highest Wall Street target for Tesla is $600 per share, set by Wedbush analyst Dan Ives.
Traditional analysts are worried about Tesla’s declining car sales. Tesla is expected to sell fewer cars in 2025 than in 2024 for the second year in a row. ARK and bullish analysts believe Tesla’s AI-trained robot taxi service will “unlock a new era of earnings growth,” as reported by TipRanks. Tesla remains one of the most discussed stocks on Wall Street.
What ARK buys and sells next
The company is valued at approximately $1.5 trillion, which is nearly twice the combined value of the 12 major global automakers. 2026 is seen as a make-or-break year for Tesla. Investors are waiting to see how quickly Tesla can grow its Cybercab robot-taxi business. Wall Street currently gives Tesla an overall “Hold” rating. Analysts’ opinions are divided into 12 Buy ratings, 12 Hold ratings, and 9 Sell ratings.
The average 12-month price target for Tesla is $386.42. This average target indicates a possible decline of 15.81% from the last traded price. According to Investing.com, in addition to selling Tesla, ARK also made new purchases in other companies. ARK purchased 108,557 shares of Robinhood, showing confidence in the online trading platform. ARK also purchased 97,406 shares of Block, signaling strong interest in the fintech. Other acquisitions included a diverse range of Deere & Co, L3Harris Technologies, Schrödinger and Rubrik. On the sell side, ARK has reduced its holdings in Teradyne, SoFi, Iridium Communications and Ibotta. These transactions show that ARK is reallocating money to fintech and technology while reducing other positions. Overall, according to reports, Cathie Wood’s Tesla sale appears to be a strategy move and not a loss of faith in Tesla’s long-term vision.
FAQ
Q1. Why did Cathie Wood sell Tesla shares?
Cathie Wood sold her Tesla shares mainly to rebalance ARK Invest’s portfolio, not because she had bad intentions about Tesla’s future.
Q2. Is ARK Invest still bullish on Tesla shares?
Yes, ARK Invest is very bullish on Tesla and has a long-term price target of $2,600 based on its robot taxi and autonomous driving plans.
