Tesla Stock Sits Out The Mag 7 Rally — Cathie Wood’s Ark Keeps Loading Up Anyway

• ARK Invest bought 79,845 Tesla shares worth about $27.8 million so far this week, adding exposure during the pullback.
• CEO Elon Musk said only a few hundred Model S and Model X vehicles remain in inventory, ahead of plans to end production next quarter.
• Tesla delivered 16,130 “other models” vehicles in Q1, compared with 341,893 Model 3 and Model Y units.

Shares of Tesla, Inc. (TSLA) slipped to a seven-month low on Wednesday, breaking from the broader Magnificent Seven rally, even as Cathie Wood’s ARK Investment Management continued accumulating shares through the pullback.

TSLA stock fell over 3% on Wednesday to $343.25, logging its fourth consecutive session of losses.

Ark Adds TSLA Shares During Pullback

ARK Invest increased exposure to Tesla across its flagship ARK Innovation ETF (ARKK), ARK Autonomous Technology & Robotics ETF (ARKQ) and ARK Space Exploration & Innovation ETF (ARKX) this week, purchasing 79,845 shares worth about $27.8 million.

The firm bought 39,691 shares on Monday, followed by 6,944 on Tuesday and another 33,210 on Wednesday, extending a pattern of buying into weakness rather than trimming exposure.

Tesla remains ARKK's largest holding, accounting for 9.72% of the portfolio as of Wednesday. The ETF declined 12% in the latest quarter, its weakest performance since January 2025, with Tesla’s decline weighing heavily on returns.

Wood has repeatedly emphasized autonomy as central to ARK’s long-term investment case. In a February interview with Morningstar, she said autonomous mobility could scale into a $10 trillion opportunity, adding Tesla could become autonomous in 25% to 50% of major U.S. cities by the end of this year, depending on regulatory progress. 

ARK still projects a $2,600 Tesla price target by 2029, implying a potential market cap of $9.75 trillion, excluding contributions from Tesla’s Optimus humanoid robot.

Tesla Trails Magnificent Seven Peers

Tesla’s decline in share price underscores a widening gap with its mega-cap tech peers, who have benefited from investor enthusiasm tied to AI infrastructure spending.

The stock has fallen 13% over the past month, making it the worst-performing “Magnificent Seven” stock over the period and the weakest performer in the group year-to-date. Short interest in Tesla also remains the highest among the peer group at 1.6%, compared with 1.1% for Microsoft, the second-weakest performer in the lot year-to-date.

Tesla Winds Down Model S, X Production

Late Wednesday, CEO Elon Musk said only a few hundred Model S and Model X vehicles remain in inventory, urging customers to place orders for the legacy premium models.

Tesla plans to end production of both vehicles next quarter and repurpose the Fremont factory's capacity toward manufacturing the Optimus humanoid robot, marking a major shift away from two of the company’s longest-running vehicle platforms.

Deliveries of Tesla’s “other models” category, which includes Model S, Model X and Cybertruck, totaled about 16,130 vehicles in the first quarter, while the Model 3 and Model Y accounted for roughly 341,893 of Tesla’s 358,023 total deliveries.

JPMorgan Warning Overshadows FSD Update

Tesla’s slump in “Magnificent Seven” rally also comes after JPMorgan reiterated its ‘Underweight’ rating and flagged a 60% downside to the stock, warning that expansion into higher-volume vehicle segments carries execution risks tied to demand, competition and pricing pressure.

The bank lowered its 2026 earnings per share (EPS) forecast to $1.8 after Tesla’s Q1 delivery update, citing uncertainty around demand and inventory.

Meanwhile, Tesla began rolling out Full Self-Driving (Supervised) version 14.3, introducing upgrades to reinforcement-learning training, neural-network vision processing and performance in complex driving environments. The update also improves system responsiveness by 20%, alongside enhancements to emergency-vehicle detection, intersection handling and parking behavior.

How Do Retail Traders Feel About TSLA?

On Stocktwits, retail sentiment for TSLA has remained ‘bearish’ over the past week amid a 112% surge in message volumes over the same period.

One user said, “Cathie Wood this week bought at this price. She knows something we don't.”

Another user expects TSLA to “lose the $300 probably by next week.”

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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