Cathie Wood's Ark Invest Held $1.16 Billion of Tesla Stock as of the End of the Second Quarter, Even as It Trails Every Other "Magnificent Seven" Stock in 2026. Is Her Conviction Still Justified?
Cathie Wood is betting Tesla will become more than an automaker.
Overview
Ark Investment Management's 13F filing for the second quarter showed that as of June 30, the investment firm held 2.76 million Tesla (NASDAQ: TSLA) shares worth approximately $1.16 billion. And though it reduced its position in the electric vehicle (EV) company slightly during Q2, Ark reportedly went right back to buying as Tesla shares fell, purchasing an estimated 450,000 shares worth roughly $170 million to $180 million between June 21 and Aug. 5. That's a pretty serious vote of confidence in a stock that's had a pretty bumpy year so far.
Through Aug. 19, Tesla was down roughly 23% year to date, leaving it in last place among the "Magnificent Seven." The gap isn't particularly close, either. Nvidia is up strongly for the year, while Amazon, Apple, and Alphabet are also sitting on double-digit percentage gains. Microsoft remains in positive territory, and even Meta Platforms -- the only other member of the group that is down in 2026 -- has lost less ground than Tesla. So why does Wood keep buying it?
Details
Here's the most important thing to understand about Ark's Tesla thesis: In Wood's view, it is not primarily an electric vehicle bet anymore. Ark's published valuation model gives Tesla a $2,600 per share price target for 2029, with a $2,000 bear case and $3,100 bull case. More importantly, Ark estimates that nearly 90% of Tesla's enterprise value and earnings could come from robotaxis by 2029. That's why its disappointing EV sales results haven't scared Wood away.
Source
Originally published at www.fool.com.