Cathie Wood Trims Tesla Stock (TSLA) Ahead of Robotaxi Launch—Is it a Red Flag for Investors?

Cathie Wood, one of Tesla’s most prominent long-term bulls, made a surprising move by trimming her Tesla (TSLA) holdings weeks before the company’s highly anticipated Robotaxi reveal. As excitement builds around Elon Musk’s autonomous vision, ARK Invest’s sudden Tesla sell-off has raised eyebrows across Wall Street.

For context, Wood’s ARK Innovation ETF (ARKK) sold nearly 50,000 Tesla shares last week. This includes 27,377 on Tuesday, 15,817 on Wednesday, and 6,511 on Friday, totaling around $17 million, according to recent trade disclosures. Meanwhile, Tesla is set to launch its Robotaxi service, featuring self-driving CyberCab vehicles, which will offer on-demand rides in Austin starting on June 12.

What It Means for Investors

While ARK’s latest Tesla sell-off may look alarming, it’s worth noting that Cathie Wood routinely trims oversized positions to rebalance her portfolio. This move likely signals profit-taking or strategic diversification, not a complete loss of faith.

That said, the timing is notable. With Tesla’s highly anticipated Robotaxi launch looming, some investors may wonder if ARK is hedging against short-term uncertainty. After all, autonomous driving technology is still unproven at scale, and if Tesla’s rollout doesn’t meet expectations, market sentiment could shift quickly.

For retail investors, ARK’s partial exit could be a quiet warning to avoid getting caught up in the hype.

Tesla Retains Top Spot in ARKK

Despite recent share sales, ARKK remains deeply invested in Tesla, demonstrating strong long-term conviction. Wood has been a steadfast Tesla bull, fueled by her confidence in the company’s potential to dominate the robo-taxi market.

Earlier in March, ARKK set an ambitious price target of $2,600 for Tesla shares by 2029. Wood’s optimistic forecast is grounded in the belief that Tesla’s robotaxis will drive nearly 90% of the company’s value by the end of the decade.

Overall, Tesla remains the largest holding in the ARKK fund, comprising nearly 13% of its portfolio.

Are Tesla Shares a Good Buy?

On Wall Street, analysts have maintained a neutral stance on Tesla stock. According to TipRanks, TSLA stock has received a Hold consensus rating, with 16 Buys, 10 Holds, and 11 Sells assigned in the last three months. The average Tesla stock price target is $282.7, suggesting a potential downside of 17.5% from the current level.

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