Cathie Wood's Ark Invest Held $1.16 Billion of Tesla Stock as of the End of the Second Quarter, Even as It Trails Every Other "Magnificent Seven" Stock in 2026. Is Her Conviction Still Justified?

Cathie Wood's Ark Invest maintained a $1.16 billion stake in Tesla shares at the close of the second quarter of 2026, despite Tesla's performance trailing all other stocks in the Magnificent Seven group. The investment firm's position in Tesla fell slightly during Q2, but Wood quickly bought back approximately 450,000 shares between June 21 and August 5, spending an estimated $170 million to $180 million.

This significant commitment in a stock that has faced a challenging year highlights Wood's unwavering confidence in Tesla's potential. As of August 19, Tesla had declined roughly 23% year to date, placing it last among the Magnificent Seven stocks. Only Nvidia exhibited strong year-to-date performance, while Amazon, Apple, Alphabet, and Microsoft demonstrated double-digit gains.

Even Meta Platforms, the sole Magnificent Seven member that has decreased in value in 2026, lost less ground than Tesla. Wood's rationale for her continued investment in Tesla revolves around her belief that the company's future revenue and earnings will be primarily derived from robotaxis by 2029. Ark Investment Management's valuation model forecasts a $2,600 per share price target for Tesla in 2029, with a $2,000 bear case and $3,100 bull case.

This outlook is underpinned by the company's predicted ability to generate nearly 90% of its enterprise value and earnings from robotaxi-related activities. As such, Wood's disappointment with Tesla's underwhelming EV sales performance has not deterred her from maintaining her long-term conviction in the electric vehicle company.