Will Tesla $TSLA save Cathie Wood? Since its decline in April 2024, the EV giant has surged by nearly 75%, and now comprises 15% of the ARK Innovation ETF $ARKK (as of July 12).

Cathie Wood typically limits the fund's stake in stocks to 10%, and while she has reduced this position in recent weeks, Tesla remains a significant part of the portfolio. Despite this, ARKK continues to disappoint investors: it has posted a year-to-date return of -7%, trailing the S&P 500 $SPX by 18%. Over the past 5 years, the ETF has returned -3%, sharply contrasting with the S&P 500's 86% growth.

Many investors once viewed Cathie Wood's fund as the "next big thing" following its 150% surge in 2020. The result? According to Morningstar data, the ARK Innovation ETF has destroyed $7.1 billion in wealth, resulting in a $14 billion loss for Ark Invest ETFs overall.