Ahead of Robotaxi Debut, Tesla Proponent Cathie Wood Divests 50,000 Shares

TradingKey - Cathie Wood's ARK Invest, known for its strong support of Tesla, surprisingly reduced its holdings by 50,000 shares over three consecutive days last week, just before the anticipated launch of Tesla's Robotaxi. 

According to public data, ARK's fund ARKK divested 27,377 Tesla shares last Tuesday (May 27th), followed by 15,817 shares on Wednesday, and an additional 6,511 shares on Friday. The total divested shares amount to approximately $17 million in market value.

This move appeared to influence Tesla's stock price, which fell over 1% on Monday, closing at $342.69. 

Bloomberg reports that Tesla plans to debut its Robotaxi service in Austin, Texas, on June 12, which has been a key driver behind Cathie Wood's long-standing bullish stance on Tesla.

Despite a slump in Tesla's sales and stock price in April, Wood remained optimistic about the company, specifically highlighting how Robotaxi could help consumers avoid the substantial upfront costs of car ownership. 

Analysts suggest that Wood's recent share reduction is not a bearish turn but rather a technical portfolio adjustment.

Currently, Tesla remains ARKK's largest holding, accounting for nearly 13% of its investment portfolio as of Monday. 

Previously, ARK set a target price of $2,600 for Tesla by 2029, representing a 660% increase over Monday's closing price.