Cathie Wood Trims Tesla Stock Ahead of Robotaxi Debut

Cathie Wood’s ARK Innovation ETF (ARKK) sold nearly 50,000 Tesla (NASDAQ:TSLA) shares last weekabout $17 million worthjust as the company prepares to launch its Robotaxi service on June 12.

While Wood often trims large positions to rebalance and lock in gains, the timing ahead of Tesla’s autonomous?taxi reveal in Austin has investors wondering if ARK is bracing for short?term volatility in what remains unproven technology at scale.

Tesla’s Robotaxi, featuring self?driving CyberCab vehicles, represents a core pillar of ARK’s bold thesis that robo?taxis could account for 90% of Tesla’s value by 2029. Despite the recent sell?off, TSLA still comprises about 13% of ARKK’s portfolio, and Wood’s $2,600 price target by 2029 underscores her enduring confidence.

Investors should care because ARK’s partial exit may serve less as a loss of faith and more as a reminder to temper expectations: if Robotaxi adoption or regulatory approval falters, Tesla’s stock could face sudden pressure. Meanwhile, ARK retains a dominant long?term position, signaling that any short?term hedge is unlikely to derail its overall bullish stance.

This article first appeared on GuruFocus.