Cathie Wood – the founder and chief executive of Ark Invest – has trimmed her exposure to Tesla (TSLA) shares ahead of the company’s much-anticipated launch of robotaxi services in Austin, tentatively slated for June 12. 

Wood is a known proponent of TSLA shares and has previously argued that they could even hit $2,600 by the end of this decade – representing a more than 7x increase from current levels. 

Still, her flagship fund sold nearly 50,000 shares of the EV maker for an estimated $17 million last week. At the time of writing, Tesla stock is up some 65% versus its year-to-date low on April 8.

Is Cathie Wood Losing Conviction in Tesla Stock?

Investors should note that Wood’s recent sales of Tesla shares is not a sign that she’s lost conviction in the EV maker or its long-term potential in the robotaxi space. 

Instead, the move reflects what can only be described as prudent portfolio management following a massive surge in the EV stock in recent weeks. 

As a growth-focused investor, Cathie Wood often trims positions when valuations spike, locking in gains while staying aligned with her core thesis. 

Simply put, trimming exposure to TSLA stock last week was strategic rebalancing, not a shift in Wood’s long-held bullish view on the company’s future. 

Piper Sandler Says Buy TSLA Shares Before June 12

Piper Sandler analysts recommend buying Tesla shares ahead of the company’s expected launch of robotaxi services next week. 

The investment firm continues to rate the EV stock at “Overweight” with a price target of $400, indicating potential upside of another 14% from current levels. 

It remains constructive also because Tesla is the only automaker that’s fully committed to in-house production of EV batteries with zero reliance on China.  

This vertical integration sets Tesla apart from other automotive stocks.  

Some Wall Street Firms Remain Cautious on Tesla

Caution is still warranted in playing Tesla stock at current levels as not all Wall Street firms are as bullish on it as Piper Sandler. 

The consensus rating on the electric vehicle behemoth currently sits at “Hold” only with the mean target of $290 indicating potential downside of about 17% from here.