Cathie Wood Sells $38.5M Tesla Shares as Sales Slump in India, Canada and FSD Probe Extended
Tesla’s stock saw a $38.5 million Cathie Wood sell-off on January 14, while India Model Y imports remain one-third unsold after four months and Canadian sales fell 60% in 2025 with 116,000 Cybertrucks recalled. U.S. regulators granted a five-week extension for Tesla to respond to its Full Self-Driving probe.
1. Profit Taking Ahead of Q4 Earnings
Tesla shares slipped into negative territory on Friday as investors reduced positions ahead of the company’s Q4 2025 earnings report, scheduled for January 28 after market close. Volume on the session was 12% above the 30-day average, indicating significant profit-taking. Analysts at Jefferies and Morgan Stanley have held neutral ratings, citing limited upside absent a major beat on vehicle deliveries. Tesla delivered 485,000 vehicles in Q4, up 7% year-over-year, but concerns over narrowing gross margins are prompting traders to lock in gains in advance of next week’s results.
2. Five-Week Extension on Full Self-Driving Inquiry
The National Highway Traffic Safety Administration granted Tesla a five-week extension to respond to an investigation into whether its Full Self-Driving system led to traffic violations. The probe, which covers 36 crashes and 240 incidents reported since January 2023, required Tesla to submit data logs, system calibration records and video evidence. The new deadline moves from January 20 to February 24, giving Tesla additional time to collate information from its fleet of over 1.8 million vehicles equipped with the FSD beta package.
3. Lack of Near-Term Catalysts Weighing on Momentum
Despite broader strength in AI-related equities this week, Tesla has struggled to find a driver for renewed upside. The stock gained just 0.6% over the past five trading days and is down 2.5% year-to-date. Notable insider activity includes Ark Investment Management selling $38.5 million of shares on January 14, reallocating proceeds into semiconductor and fintech names. Europe and Canada have seen significant demand erosion—Canadian deliveries plunged by 60% in calendar 2025—while one-third of initial Model Y imports into India remain unsold after four months on the market.
4. FSD Subscription Shift Faces Hurdles
Tesla’s planned transition of its Full Self-Driving feature from a one-time purchase to a $99 monthly subscription starting February 14 is central to Elon Musk’s target of 10 million subscribers. Yet the technology remains at Level 2 autonomy, and competitive pressure is rising: Waymo operates over 200 robotaxis in Austin, and General Motors has announced a Level 4 fleet pilot for later this year. With FSD recalls affecting 116,000 Cybertruck units in 2025 and regulators scrutinizing the system’s safety record, investors are questioning whether the subscription model can deliver the promised recurring revenue uplift.