ARK Invest’s Cathie Wood has sold another 1.2 million shares of Tesla (TSLA), reducing her firm’s stake by approximately 18% over the past quarter. The move underscores a broader portfolio shift amid evolving electric vehicle market dynamics and macroeconomic pressures.
- Cathie Wood’s ARK Invest sold 1.2 million Tesla (TSLA) shares in December 2025.
- Total TSLA holdings reduced by ~18% over the past quarter.
- NIO, LI, and XPEV shares rose 2.9% to 4.1% following the news.
- ARK’s move reflects reassessment of Tesla’s competitive positioning and growth trajectory.
- Broader trend of rebalancing in tech and EV portfolios amid macroeconomic pressures.
- Tesla’s recent price cuts and production delays cited as contributing factors.
Cathie Wood’s ARK Invest has executed a significant sell-off of Tesla (TSLA) stock, offloading 1.2 million shares in late December 2025. This transaction brings the total number of TSLA shares sold by ARK this year to nearly 3.5 million, representing a substantial reduction in its exposure to the electric vehicle leader. The latest sale follows a series of strategic adjustments within ARK’s portfolio, with the firm citing shifting competitive landscapes in the EV sector and revised growth expectations for individual companies. The divestment comes at a time when Tesla faces increasing pressure from Chinese EV manufacturers, including NIO (NIO), Li Auto (LI), and XPeng (XPEV), which are expanding rapidly in both domestic and international markets. These companies have demonstrated strong unit growth and improving margins, challenging Tesla’s long-held dominance in the premium EV segment. Meanwhile, Tesla’s recent production slowdowns and price cuts have raised concerns about long-term profitability. Market reaction has been mixed. TSLA shares dipped 2.7% in after-hours trading following the disclosure, while NIO rose 4.1%, LI gained 3.3%, and XPEV increased 2.9%. Analysts note that while the sell-off reflects a tactical assessment rather than a fundamental rejection of Tesla’s long-term potential, it may influence investor sentiment, particularly among momentum and growth-focused funds. The move highlights a broader trend of portfolio rebalancing in the tech and EV space, with investors reassessing exposure to high-valuation growth stocks amid rising interest rates and cautious macroeconomic outlooks. As ARK continues to reallocate capital toward emerging technologies like AI-driven automation and battery innovation, Tesla’s role as a core holding is being reevaluated.