Elon Musk’s Tesla was relegated to the backseat in Cathie Wood’s flagship fund behind Roku, as his repeated Twitter tantrums continued to scare investors away.
According to her Ark Invest website, the streaming service provider now makes up nearly 8.4% of her Ark Innovation exchange traded fund, versus just over 8.2% for Tesla and other major holdings like video conferencing provider Zoom.
At the end of March, Tesla still made up 9.7% of her ETF’s portfolio with Roku comprising only 6.4% of its overall value.
The news fuelled current bearish sentiment towards the stock triggered by an Insider report his other company, SpaceX, had paid an employee hush money to cover up a potential sex scandal.
Musk denied the claims.
Shares in the centibillionaire’s car company tumbled nearly 7% on Friday to new lows not seen since August, completely erasing a short relief rally on the back of stock buyback hopes.
By comparison, Roku and Ark Innovation both dropped only about 3% amid a 1% slide in the tech-heavy Nasdaq.
Has Wood dumped more Tesla stock?
Ark Innovation bets exclusively on high risk, high growth stocks Wood believes offers maximum exposure to disruptive technologies.
These include artificial intelligence, genome sequencing, blockchain technologies and robotics. Traditionally Tesla has been her highest conviction buy, as it cuts across a number of these emerging tech trends.
Recently Wood’s team even came out with a $4,600 price target for Tesla for 2026, which if accurate would offer a near sevenfold upside potential from current levels.
Unlike her recent decision to trim her Tesla holdings to free up cash for an investment in General Motors, however, there’s no indication that Wood dumped any further shares in Musk’s company.
Instead it appears as if Roku’s share price performance organically led to it surpassing Tesla as Wood’s largest single position.
This hasn’t been a help for Wood, however, as her Ark Innovation ETF is currently down 57% since the start of this year.