Tesla Bulls Are Selling: A Red Flag or Strong Buy Signal?

 Why Tesla Optimists Are Selling Shares — And What It Means for the Stock Market

As Tesla prepares to launch its highly anticipated robotaxi service this June, a surprising trend is emerging — some of the company's most loyal investors are starting to sell their shares.




Cathie Wood’s ARK Invest offloaded approximately 50,000 shares of Tesla last week, worth around $17 million. The sales occurred on May 27, 28, and 30, even as Tesla’s stock surged 6.9% to close at $362.89 on May 27 — its highest level in over three months.




Despite these sales, Tesla remains the top holding in ARK’s Innovation ETF (ARKK), accounting for 13% of the portfolio. ARK has long maintained a bullish view, projecting Tesla’s stock could reach $2,600 by 2029.


In a more dramatic move, Gary Black, co-founder of Future Fund (FFND) and another Tesla bull, announced he had sold all his Tesla shares, citing overvaluation. This marks the first time since 2021 he has held zero Tesla stock. He still maintains a year-end price target of $310, notably below the current price of $342.69 (as of June 2).


Tesla’s P/E ratio has nearly doubled to 180x projected 2024 earnings, raising concerns about valuation sustainability. The stock has climbed 44% since April 22, when Q1 earnings were announced.


Meanwhile, analyst Dan Ives of Wedbush raised his Tesla target to $500, emphasizing its potential as an undervalued AI-powered robotaxi play. However, analysts warn of regulatory challenges ahead, especially as Tesla plans to expand its autonomous fleet from 10 to 1,000 Model Y vehicles within months.


Tesla’s robotaxi launch is expected around June 12, though the date is still fluid. Investor optimism may already be "priced in," setting the stage for possible profit-taking once the service becomes public.


Amid all this, the broader U.S. stock market has remained resilient. Rising advance-decline lines suggest increasing breadth in market gains — a traditionally bullish indicator. Technical analysts argue that now is not the time to reduce equity exposure, especially as summer tends to be one of the most favorable periods for stock returns.


#TeslaStock #Robotaxi #CathieWood #ARKInvest #GaryBlack

#ElonMusk #AIstocks #StockMarketTrends #TechStocks #InvestorSentiment

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