In total, ARK sold 87,993 Tesla shares, worth about $39.3 million, across both ETFs, as reported by Investing.com. This sale surprised many investors because Cathie Wood has always been very positive about Tesla. Experts say the sale does not mean ARK has lost faith in Tesla’s future. The main reason for the sale is portfolio management, not a change in opinion on Tesla.
Why ARK sold Tesla shares
Tesla is the largest holding in both ARKK and ARKW funds, as stated by TipRanks. Tesla makes up more than 10% of the 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 stock. ARK believes Tesla’s biggest future value comes from self-driving technology and robo-taxis. ARK has set a $2,600 price target for Tesla by 2029.
This target suggests Tesla could rise over 450% from current levels. ARK’s forecast means Tesla could grow about 50% per year for the next four years, as stated by TipRanks. This long-term target is very different from most Wall Street analysts, who usually give one-year price targets. The highest current Wall Street target for Tesla is $600 per share, set by Wedbush analyst Dan Ives.
Traditional analysts are worried because Tesla’s car sales are declining. 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 robo-taxi service will “unlock a new era of earnings growth”, as reported by TipRanks. Tesla remains one of the most debated stocks on Wall Street.
What ARK bought and sold next
The company is valued at around $1.5 trillion, which is about double the combined value of 12 major global automakers. The year 2026 is seen as a make-or-break year for Tesla. Investors are waiting to see how fast Tesla can grow its Cybercab robo-taxi business. Wall Street currently gives Tesla a “Hold” rating overall. Analyst opinions are divided, with 12 Buy ratings, 12 Hold ratings, and 9 Sell ratings.
The average 12-month price target for Tesla is $386.42. This average target suggests a possible 15.81% downside from the last traded price. Along with selling Tesla, ARK also made new purchases in other companies, as cited by Investing.com. ARK bought 108,557 shares of Robinhood, showing confidence in the online trading platform. ARK also bought 97,406 shares of Block, signaling strong interest in fintech. Other purchases included Deere & Co, L3Harris Technologies, Schrödinger, and Rubrik, showing diversification. On the selling side, ARK reduced holdings in Teradyne, SoFi, Iridium Communications, and Ibotta. These trades show ARK is reallocating money toward fintech and technology, while trimming other positions. Overall, Cathie Wood’s Tesla sale looks like a strategy move, not a loss of belief in Tesla’s long-term vision, as per the reports.
FAQs
Q1. Why did Cathie Wood sell Tesla shares?
Cathie Wood sold Tesla shares mainly to rebalance ARK Invest’s portfolio, not because she is bearish on Tesla’s future.
Q2. Is ARK Invest still bullish on Tesla stock?
Yes, ARK Invest remains very bullish on Tesla and has a long-term price target of $2,600 based on its robo-taxi and self-driving plans.