Cathie Wood trims $11.2 million in longtime favorite stock

Tesla (TSLA) stock has been performing exceptionally well lately.

Shares have surged nearly 50% over the past six months, driven by optimism surrounding autonomous driving, AI, and the EV giant’s long-term growth prospects.

For most, the rally is a confirmation that the worst might be over, despite the sluggishness in the company’s underlying business.

That’s exactly what makes Cathie Wood’s latest move stand out.

Even with Tesla’s climb, the ARK Invest boss trimmed positions, selling roughly $11.2 million worth of shares in a single day (Dec. 18).

Naturally, with Tesla being a longtime favorite for Wood, it’s the kind of decision that sparks instant speculation.

However, selling doesn’t necessarily point to surrender.

It also reflects discipline, valuation-related troubles, or simple portfolio management following a superb run-up.

Also, Wood isn’t the only one at a crossroads.

Wall Street’s view of Tesla stock is largely divided, with optimism over AI pitted against concerns over margins, execution, and how much the good news has already been priced in.

Wood’s ARK Invest sold off 23,110 shares of Tesla, valued at nearly $11.2 million on Dec. 18.

The move fits a pattern that has become clear over the past two to three months.

ARK’s approach appears to be more akin to position sizing and profit-taking following a massive rally, rather than a change in long-term conviction. Tesla remains ARK’s largest holding, even with multiple cuts over the past few months.

More Tesla:

The selling has shown up in distinct waves:

• Q2 2025 (filed July 30): ARK disclosed 3,077,464 TSLA shares, down 181,294 from Q1.

• Dec. 12, 2025: ARK sold 87,993 shares, valued at roughly $39.3 million.

• Dec. 15, 2025: Another 124,867 shares were sold, worth nearly $57.3 million.

• Smaller trims on Nov. 7 (71,638 shares) and Nov. 26 (27,102 shares) reinforce the same message.

• Tesla: 10.09%

• Shopify: 4.61%

• Roku, Inc.: 4.57%

• Coinbase: 4.27%

• Palantir Technologies: 3.98%

• CRISPR Therapeutics: 3.88%

• Robinhood: 3.71%

• Advanced Micro Devices: 3.49%

• Tempus: 3.41%

• Teradyne: 2.94%
  Source: Cathiesark.com

Tesla has been riding the renewed wave of optimism surrounding autonomy and AI, but a sizeable chunk of Wall Street has become a lot more valuation-sensitive.

A lot of it is about timing and how much of the non-auto upside investors are already paying for at this point.