ARK Invest Sells Tesla Shares Ahead of Robotaxi Launch in June 2025

ARK Investment Management, led by renowned investor Cathie Wood, has sold off a significant portion of its Tesla stock just weeks before the electric vehicle (EV) giant launches its much-anticipated robotaxi service in Austin, Texas. This move, detailed in a recent Barron’s report, comes as Tesla prepares to roll out on-demand rides using its self-driving CyberCab vehicles, potentially reshaping urban mobility.

Tesla’s Robotaxi Rollout: A Game-Changer for EVs

Tesla’s robotaxi service is set to launch on June 12, 2025, according to a Bloomberg report cited by Barron’s. Initially, the service will deploy around 10 Modell Y robotaxis in Austin during the first week, with plans to scale up to 1,000 units within months.

Elon Musk, Tesla’s CEO, confirmed on X that the company has been testing these self-driving Model Ys in Austin with no incidents. Speaking with CNBC, Musk noted that the service will be geo-fenced, meaning the vehicles will avoid certain areas if deemed unsafe, ensuring operational safety.

This launch marks a significant milestone for Tesla’s Vollständig selbstfahrend (FSD) technology, which relies on artificial intelligence (AI) to navigate roads autonomously. The CyberCab vehicles, designed specifically for this service, aim to eliminate the need for human drivers, reducing operational costs for ride-hailing.

Cathie Wood, in a prior conversation with Barron’s, emphasized the economic benefits, stating:

“People can pay for rides as they go, as they’re doing with Uber and Lyft today, just at much cheaper prices without the costs of a human driver.”

ARK’s Strategic Sell-Off: Timing and Impact

ARK’s decision to trim its Tesla holdings comes after the stock surged 23% in May 2025, though it dipped 1.3% to $342.03 on Monday, June 2—the first trading day of the month. ARK Innovation ETF sold a total of nearly 50,000 Tesla shares last week, valued at approximately $17 million. This included 27,377 shares on Tuesday, 15,817 on Wednesday, and 6,511 on Friday, according to the fund’s daily trade disclosures. Despite the sales, Tesla remains the top holding in the ARKK fund, with a 13% weighting as of Monday.

Wood’s move appears to be a strategic rebalancing rather than a loss of confidence. ARK Invest has long been bullish on Tesla, maintaining a price target of $2,600 by 2029, driven by optimism about Tesla’s dominance in the robotaxi sector.

However, the timing of the sale aligns with Tesla’s recent volatility, partly due to Musk’s political involvement with the Trump administration, which he stepped away from last week—a decision that has helped lift Tesla’s stock in recent weeks.

Industry Trends: Robotaxis and Urban Mobility

The robotaxi launch could redefine urban transportation by offering a cost-effective alternative to traditional car ownership. With ride-hailing costs potentially lower than those of Uber and Lyft, Tesla’s service may appeal to EV enthusiasts and city dwellers alike.

Wedbush Securities analyst Dan Ives recently raised his price target for Tesla shares from $350 to $500, calling the company, which uses AI to train its robotaxis, an “undervalued AI play.”

Operationally, Tesla’s geo-fencing approach ensures safety but may limit the service’s initial reach. Scaling to 1,000 units will require robust infrastructure, including charging stations and maintenance hubs, to support the fleet. Regulatory scrutiny will also be a factor, as autonomous vehicles face strict oversight to ensure public safety.

What This Means for EV Owners and Enthusiasts

For EV owners, Tesla’s robotaxi service highlights the growing role of AI in electric vehicles, potentially increasing the value of FSD-equipped models. Enthusiasts may see this as a step toward a future where autonomous EVs dominate ride-hailing, offering sustainable, driverless transport at a fraction of current costs. As Tesla continues to innovate, the EV industry watches closely to see if this launch will accelerate the shift toward fully autonomous urban mobility.

Photos courtesy of Tesla