Tesla (TSLA) stock has gained momentum this week, rising more than 4%. However, Ark Invest’s Cathie Wood has decided to exit her TSLA stock. In fact, Wood made several position changes across the ARK ETF on Dec. 4, moving money from TSLA into small- and mid-cap growth stocks. The dumping is a worrying indicator for TSLA, as Mr. Wood’s stock price movements are often closely watched to see what’s next for big tech stocks.
Cathie Wood’s Ark unloaded 7,478 shares of TSLA stock worth about $3.3 million. The cuts follow a series of recent cuts, marking a steady shift away from large-cap tech after a strong year. Additionally, Ark’s fire sale of Tesla TSLA stock is not the first bearish flag for the stock. Earlier this week, legendary short stock seller Michael Burley called the EV maker “ridiculously overvalued” in a post on Substack last Sunday. “Tesla’s market cap is currently wildly overvalued, and has been for quite some time,” Barry wrote.
Other investors have also previously been concerned about Tesla’s lack of focus on one project. Musk has even floated the concept of developing flying cars in the next few years, adding another daunting project to his to-do list. This, combined with Mr. Musk’s focus on matters other than Tesla, such as XAI and politics, was a major catalyst for a turbulent 2025 for stock prices. Year-to-date, TSLA stock is up 12.71%, but it’s been a rocky road filled with dips and spikes. Therefore, many investors have chosen to disagree with the inconsistent TSLA hype.
Additionally, analysts like Wedbush’s Dan Ives remain bullish on Tesla stock, believing the automaker’s AI future is something investors should focus on. “In my opinion, this will be the most important chapter in Tesla’s history to date,” Ives said at a Yahoo Finance Invest event in New York last week. Ives called the passage of Musk’s pay package a “bright green light” for Tesla’s AI and self-driving technology plans, and rates the stock an outperform, with a high price target of $600.
