Longtime Tesla super-bull Cathie Wood of ARK Invest sold a significant amount of the company’s stock, dumping 60,898 shares from the ARK Innovation ETF (ARKK) and 27,095 shares from the ARK Next Generation Internet ETF (ARKW). This action can be alarming for investors, but the most likely reason for the sale is portfolio management rather than any shift in ARK’s incredibly bullish view of Tesla’s future.
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Tesla is the largest position in both funds, consuming more than 10% of total investments. Institutional fund managers often sell stocks, even favorites, to rebalance their exposure and control portfolio risk.
ARK Invest Is Still Agressively Bullish on Tesla Stock
Despite the sales, ARK Invest’s outlook on Tesla remains aggressively bullish, driven by the huge value they assign to the company’s self-driving and robo-taxi business. Their $2,600 price target by 2029 implies a staggering upside of over 450% from recent levels, suggesting annual gains of about 50% for the coming four years.
This aggressive target contrasts sharply with traditional Wall Street firms, whose analysts typically set one-year targets. Even the current highest Street target sits at a comparatively conservative $600 a share from Wedbush’s Dan Ives. The massive divergence reflects a fundamental debate: traditional analysts focus on declining car sales (Tesla is on track to sell fewer cars in 2025 than in 2024 for the second consecutive year). Meanwhile, ARK and ultra-bulls like Ives are betting the company’s launch of its AI-trained robo-taxi service will “unlock a new era of earnings growth”.
Overall, Tesla remains one of the most controversial stocks on Wall Street, currently valued at about $1.5 trillion, roughly twice the combined value of 12 of the largest global automakers. The year 2026 is shaping up to be another “make-or-break year” as investors await concrete answers on how fast Tesla can expand its Cybercab robo-taxi business.
Is Tesla a Buy, Hold, or Sell?
Tesla (TSLA) currently holds a “Hold” consensus rating from Wall Street, a reflection of the deep division surrounding the stock. The ratings breakdown shows that 12 analysts recommend a Buy, 12 suggest a Hold, and nine advise a Sell. Based on 33 analysts’ 12-month price targets, the average 12-month TSLA forecast sits at $386.42, which represents a potential 15.81% downside from the last price.
