Cathie Wood’s Ark Invest Continues to Hold $1.16 Billion in Tesla Amidst Underperformance Compared to the Magnificent Seven in 2026: Is Her Trust in Tesla Still Valid?

Key Points

Ark Investment Management’s 13F filing as of June 30 revealed it holds 2.76 million shares of Tesla (NASDAQ: TSLA), valued at approximately $1.16 billion. Despite a slight reduction in its position during Q2, Ark purchased around 450,000 additional Tesla shares between June 21 and August 5, amounting to $170 million to $180 million. This indicates strong confidence in Tesla, even as its stock has declined roughly 23% year-to-date and struggles compared to other major tech stocks.

In Q2, Tesla delivered 480,126 vehicles, a 25% increase year-over-year, but its adjusted earnings of $0.33 per share missed the $0.54 consensus estimate, and the operating margin fell to 1.4%. Ark maintains a 2029 valuation model for Tesla with a target of $2,600 per share, primarily driven by anticipated revenues from robotaxis, which Ark estimates could contribute nearly 90% of Tesla’s enterprise value by 2029. The recent launch and expansion of Tesla’s Robotaxi service and production of the Cybercab model have provided tangible progress toward this goal.

While Ark’s bullish stance on Tesla hinges on the successful scaling of its autonomous ride-hailing services, any delays or regulatory challenges could impact its valuation forecast. Currently, Tesla’s energy storage and robot initiatives are not sufficient to justify its high target share price.