"ARKK is having a rough start to 2026. After closing 2025 with a 35.49% return that crushed the S&P 500, Cathie Wood's flagship innovation fund has stumbled 9.58% lower year-to-date as of early February. The pullback has been swift and concentrated, driven by weakness in the fund's largest holdings and a broader repricing of growth stocks after an exceptional 2025 run."
"Tesla remains ARKK's largest position at 11.12% of the portfolio, and the stock's struggles have directly impacted fund performance. TSLA is down 7.18% year-to-date through February 13, closing at $417.44. The company reported $0.50 in Q4 2025 earnings on January 28, 2026, beating estimates but showing a 60.6% year-over-year decline in quarterly earnings growth. Revenue fell 3.1% year-over-year to $94.83 billion on a trailing twelve-month basis."
"The operational challenges are mounting. Tesla dropped out of China's top 10 NEV automakers in January 2026, posting its lowest monthly sales since November 2022. BYD now commands 15.8% of the Chinese NEV market while Tesla struggles to maintain share. Leadership changes have added to investor concerns, with Raj Jegannathan exiting and the company pivoting harder toward robotaxis and AI despite cooling EV demand."
ARKK began 2026 down 9.58% year-to-date after a 35.49% gain in 2025, with the pullback concentrated in its largest holdings and growth stocks broadly. Tesla, the largest position at 11.12%, is down 7.18% year-to-date and reported Q4 2025 earnings of $0.50, a 60.6% year-over-year decline in quarterly earnings growth, while revenue fell 3.1% on a trailing twelve-month basis to $94.83 billion. Operational pressures include falling Chinese sales, loss of market share to BYD, leadership turnover, and a strategic pivot toward robotaxis and AI amid cooling EV demand. Coinbase, a smaller position at 3.55%, has also materially weakened, contributing to fund underperformance.
Read at 24/7 Wall St.
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