Cathie Wood’s Ark Invest sold 181,294 shares of Tesla (NASDAQ: TSLA) despite her bullish stance on the stock, with a long-term target of $2,600. Tesla remains the biggest holding in Ark Invest’s portfolio, comprising 7% after the recent sale. Wood may be adjusting the position due to concerns over valuation and short-term potential.

While Wood’s sale may not signal bearish sentiment, Tesla’s sales are expected to drop, with a stock trading at 17 times sales. Wood’s move could be a risk management strategy as the position size grew too big. Analysts warn of a challenging year ahead, potentially impacting Tesla’s near-term performance.

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Read more at Nasdaq: Here’s Why I Think Cathie Wood Is Selling Tesla Stock