Not all investors react the same way. Many rush for the exits at the first stumble, but veterans know a dip doesn’t always spell danger. Cathie Wood, a veteran, showed her conviction in this regard.
The market turned cold on Tesla, but she saw something worth holding on to—and threw serious money behind it.
Wood’s ARK Funds Scoop Up About $45 Million In Tesla Shares
ARK Invest made a significant move on July 24, 2025—the day Tesla (TSLA) shares fell 8.2% following its second-quarter earnings report. Cathie Wood’s funds purchased 143,190 shares, valued at around $45.3 million, marking one of their most significant recent buys.
Tesla Shares Started Dropping Sharply In July 2025
A few days before the investment, on Monday, July 7, 2025, Tesla stock fell more than 7% in a single trading session following CEO Elon Musk’s announcement of plans to form a new political party. Although the company also reported a second-quarter revenue miss and a 13–14% drop in deliveries, the immediate market reaction appeared to be driven more by Musk’s political move than by earnings.
In the days that followed, analyst coverage increasingly shifted focus to financial fundamentals, highlighting concerns over margin pressures and continued price cuts across Tesla’s lineup.
Price drops often open doors for long-term investors. That sharp decline gave ARK the chance to buy in as others pulled back.
Margin Worries Didn’t Scare Off ARK
ARK is known for buying dips with a focus on long-term growth, especially in Tesla’s robotaxi and AI vision. The firm believes that lower margins resulting from aggressive pricing and expansion are only temporary, not a lasting problem.
Lower margins don’t always mean trouble. Sometimes, they’re the price of market expansion. Wood’s team saw margin compression as temporary—not a reason to abandon ship.
Tesla Remained A Top ARK Holding
Even amid July’s volatility, Tesla retained its spot as the top holding in ARK, accounting for over 10% of the ETF’s portfolio. This recent investment has further solidified that leadership position.
Keeping Tesla in that lead slot sends a message: the thesis hasn’t changed. Tesla remains a core bet in ARK’s strategy, unaffected by shifts in price.
Cathie Wood’s Pattern: Bold Moves, Not Market Timing
This wasn’t a one-off. Over the years, Wood has consistently increased stakes in high-conviction stocks during dips to favor innovation even when it means defying the market’s mood.
It’s a classic play: wait for noise to spook the crowd, then strike—and Tesla is the latest example. Yet ARK’s approach isn’t about timing the market. Its model leans on deep research and concentrated bets on disruptive tech.
Buying Tesla reflected that mindset that’s focused on the future. While others folded their arms at the dip, ARK acted out of belief, a stance that speaks louder than any price chart ever could.
