Tesla (TSLA) stock has picked up steam this week, rallying by over 4%. However, Ark Invest’s Cathie Wood has decided to dump her TSLA shares. Indeed, Wood shifted several positions across her ARK ETFs on Dec. 4, moving money out of TSLA into smaller, mid-cap growth stocks. The dump is a worrying indicator for TSLA, as Wood’s stock moves are often watched to see where big tech stocks are moving next.
Cathie Wood’s Ark unloaded 7,478 TSLA shares valued at roughly $3.3 million. The cuts follow a series of recent reductions that show a steady move away from large-cap tech after a strong year. Additionally, Ark’s Tesla TSLA stock dump isn’t the first bearish flag for the stock. Earlier this week, legendary short-stock seller Michael Burry dubbed the EV maker “ridiculously overvalued” in a Substack post this past Sunday. “Tesla’s market capitalization is ridiculously overvalued today and has been for a good long time,” Burry wrote.
Other investors have also been fearful of this in the past: Tesla’s lack of focus on one project. Musk even brought up the concept of developing a flying car in the next few years, adding another tough project to its to-do list. That, combined with Musk’s focus on other things outside of Tesla, like XAI or politics, has been a big catalyst in the stock’s bumpy 2025. YTD, TSLA stock is up 12.71%, but it’s been a rocky road full of dips and surges. Thus, many investors have opted against the inconsistent TSLA hype train.
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Furthermore, analysts like Wedbush’s Dan Ives remain bullish on Tesla shares, and he believes the automaker’s AI future is where investors should be looking. “In my opinion, it’s going to be the most important chapter ever in Tesla’s story,” Ives said from the Yahoo Finance Invest event in New York last week. Ives has called the passage of Musk’s pay package a “bright green light” for Tesla’s AI and autonomous tech plans, and has an Outperform rating on the stock and a Street-high $600 price target.