Cathie Wood sells $16.2 million of tumbling megacap stock

June 14, 2026 - 08:56

Cathie Wood, the founder and CEO of Ark Investment Management, is known for her aggressive bets on disruptive technology companies. However, the star investor has recently trimmed one of her most high-profile holdings: Tesla. Wood sold roughly $16.2 million worth of the electric vehicle maker's stock after shares tumbled about 6.23% over the past month and are down more than 9% so far this year.

The sale comes as a surprise to some followers, given Wood's long-standing bullish thesis on Tesla. She has frequently predicted the company will dominate the autonomous driving and robotaxi markets. Despite the recent sell-off, Ark's flagship fund still holds a massive position in Tesla, making it one of the portfolio's top weights. Wood has a history of buying dips in the stock, but this move suggests a tactical shift or a need to rebalance after the recent downturn.

Market analysts point to broader headwinds for the auto sector, including slowing demand and increased competition from Chinese manufacturers. Tesla has also faced pressure from CEO Elon Musk's political activities and ongoing legal battles over his compensation package. For Wood, the sale may simply be a way to lock in some gains from earlier rallies or to free up cash for other high-growth opportunities. As of 2025, the stock remains a core bet for Ark, but the recent reduction signals that even the most ardent believers are not immune to market volatility.