ARK Invest CEO Cathie Wood says her firm is still bullish on the AI trade, even after unloading tens of millions of dollars in Tesla (TSLA) and Meta (META) shares.
Data from the ARK Invest trade tracker Cathie’s ARK shows that the investment firm sold $17.2 million worth of TSLA on December 5th and over $929,200 on December 8th.
The firm also dumped $7.4 million in META on December 4th and $4.8 million of the social media giant’s stock on December 5th.
In total, ARK Invest sold $30.329 million worth of TSLA and META in less than seven days.
In a Fox Business interview, Wood explains the rationale behind the moves. Wood says selling Meta is more about the impact of the company’s aggressive spending in the AI race on its balance sheet. For Tesla, the decision to sell is more of a trading call, believing that the stock has hit a resistance level and could correct in the short term.
“Meta’s return on invested capital is probably going to go down as its margins compress, because it is investing so aggressively to make its way and be very relevant in the AI age. Tesla is at the top of a [trading] range. And so, we take profits, allocate into other stocks that may have had some indigestion. That’s simply a tactical move. For all we know, Tesla’s been in a five-year range. And, as I’ve always said, you know, the longer the base, the bigger the breakout. So, we could break out here, but we’ve been in this range for a while. So, taking a little off the top, and waiting to see if there is some volatility is a normal course of action for us.”
As of Wednesday’s close, Meta is trading at $650.13, and TSLA is worth $451.45.
Wood highlights that the sales do not mean that ARK Invest has abruptly shifted bearish on the AI trade. She notes that the AI cycle is nothing like the bubble witnessed in the late 1990s.
“In the late 90s, no one had a care in the world. When Amazon said, ‘We are going to lose more money because we’re investing aggressively to capture the Internet age,’ the stock would go up. That’s not happening today. There’s a wall of worry out there. And I think AI hype is a big part of that part of the wall of worry. We believe that we, right now, if we were to think about this in terms of Internet time, we are in the equivalent of 1995, but we are progressing at twice the speed of the Internet age. So, in 2026, it’ll be the equivalent of 1997. So, those were very good years in terms of the Internet trade.”
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