On Wednesday, January 14, Ark Invest sold approximately 86,139 shares of Tesla, representing a divestiture of about $38 million based on the closing price that day. The sale came as part of broader portfolio adjustments across three Ark funds, with the Innovation ETF leading the offload. This move followed bullish projections for Tesla’s robotaxi segment, where Wedbush Securities forecasts an 80% market share by year-end and sees potential for the stock to reach between $600 and $800. Despite these long-term growth expectations, the fund manager reallocated capital toward chipmakers facing AI supply bottlenecks.

Tesla announced that starting February 14, it will discontinue one-time purchases of its Full Self-Driving package, transitioning exclusively to a monthly subscription priced at $99. The change is intended to accelerate adoption—currently only about 12% of owners have activated the feature—and to create a more predictable, recurring revenue stream. The move aligns with targets in Elon Musk’s compensation plan, which includes a goal of reaching 10 million active subscriptions. Company executives believe the subscription model will offer more flexibility for future pricing adjustments and help meet stringent performance milestones tied to Musk’s pay package.

Tesla deliveries in 2025 fell by 8.6% year-over-year to 1.6 million vehicles, marking the steepest annual decline in the company’s history and the second consecutive year of lower sales. Deliveries in Europe plunged nearly 28%, while China shipments hit a three-year low in October. Meanwhile, rivals leveraging open-source AI platforms have gained ground: one leading AI chipmaker showcased a vision-language model and simulation tools at CES that aim to democratize autonomous driving development. With over 100 million driverless miles logged by competitors versus 7 billion supervised miles by Tesla, investors will be watching whether the subscription pivot and new product launches can reverse the sales slump and protect market share.