Asset Management

Why Cathie Wood’s ARK Invest remains bullish on Tesla despite profit and sales drop

Electric car maker’s business model is ‘going to transform’ as a result of its robotaxi service

Friday 25 April 2025 at 11:44

Cathie Wood, chief executive officer of ARK Invest, is one of Tesla’s biggest backers
Cathie Wood, chief executive officer of ARK Invest, is one of Tesla’s biggest backers Photo: Jose Sarmento Matos/Getty

ARK Invest, the US asset management group founded by star stock picker Cathie Wood, has thrown support behind Tesla after the electric car maker reported a fall in quarterly sales and profit.

Tesla, which is a top holding in ARK’s flagship Innovation ETF, on 22 April posted a more than 70% drop in profit between January and the end of March, with new car deliveries also falling 13% globally.