Tesla (TSLA) continues to draw intense attention from Wall Street and top investors alike. While Cathie Wood remains bullish on the EV giant, seeing long-term growth potential, Peter Thiel has significantly reduced his stake, signaling a more cautious outlook. The contrasting moves from two high-profile investors highlight the debate over Tesla’s prospects and its role in the rapidly evolving EV and AI-driven automotive markets.
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For context, Cathie Wood, founder and CEO of ARK Invest, is known for her bullish bets on disruptive tech companies. Meanwhile, Peter Thiel is a co-founder of PayPal (PYPL) and Palantir (PLTR), and is a prominent tech investor known for a more cautious or contrarian approach.
Cathie Wood Trims TSLA Stake But Stays Bullish
Wood is one of Tesla’s most prominent long-term bulls, with an ambitious $2,600 price target for TSLA stock by 2030. She believes that 90% of this valuation potential comes from Tesla’s robotaxi business. According to Wood, AI could drive massive growth for robotaxis while improving safety. Tesla, she argues, is uniquely positioned to benefit, given its expertise in robotics, energy storage, and AI.
Additionally, Wood supported Tesla CEO Elon Musk’s $1 trillion pay package, which recently received shareholder approval.
Although Wood has been selling some TSLA shares since early November, it’s part of her routine rebalancing. ARK often trims big positions, so this likely signals profit-taking or diversification, not a loss of faith in Tesla. For context, the ARK Innovation ETF (ARKK) sold 27,102 Tesla shares yesterday, worth about $11.37 million.
Despite these sales, ARKK remains heavily invested in Tesla, showing strong long-term conviction. In Q3, the fund actually added 512,158 TSLA shares, marking a 17% quarter-over-quarter increase. Overall, Tesla remains ARKK’s largest holding, making up nearly 12.12% of the portfolio.
Peter Thiel Cuts TSLA Stake
On the other hand, Thiel reduced his Tesla stake due to concerns about a potential AI bubble. According to Thiel Macro LLC’s Q3 13F filing, the fund cut its Tesla position by 76%, dropping from 272,613 shares at the end of Q2 to 65,000 shares as of September 30, 2025.
This move isn’t just about Tesla; it’s mostly about a bigger fear of an AI bubble and pulling back on risk overall. Thiel sees signs that the AI market may be getting too hyped and unsafe, so he’s stepping away from bets that could fall hardest if the bubble bursts.
Notably, he also exited Nvidia (NVDA) completely by selling his entire position in the chipmaker. With both Tesla and Nvidia reduced or removed, Thiel’s fund is clearly de-risking. The focus is on cash protection and waiting patiently for the right time. It’s more of a cautious step back, not because he has given up on the long-term Tesla story. For now, Thiel seems happy to sit on the sidelines and wait for a better moment to re-enter.
Is Tesla a Buy Right Now?
According to TipRanks, TSLA stock has received a Hold consensus rating, with 13 Buys, 11 Holds, and 10 Sells assigned in the last three months. The average Tesla stock price target is $383.04, suggesting a potential downside of 10.21% from the current level.
