Elon in DC vs. The Ark: Why is Cathie Wood trimming Tesla as Musk gains power?

[BellaJones]

Is anyone else watching the divergence between Elon Musk’s rising political influence and ARK Invest’s recent moves?

Looking at the latest Cathie Wood top 10 stocks, there’s a massive elephant in the room: Tesla (TSLA). While Tesla remains her #1 high-conviction bet (occupying nearly 9% of the portfolio), the Q4 data shows she actually dumped over 18% of her TSLA shares as the stock rallied toward the end of 2025.

This brings up a huge political question for the 2026 landscape:If Elon is basically the "Co-President" of efficiency in the current administration, why is the most famous Tesla bull on Wall Street taking profits now?

• The Bear Case: Is she worried that the GOP’s plan to axe EV tax credits will finally bite, regardless of Elon's proximity to the White House?
• The Bull Case: Is this just "routine rebalancing" to fund her new obsession with AI-biotech and Crypto infrastructure (like Coinbase and Circle)?

Personally, it feels like she’s hedging. She knows Musk’s government role is a double-edged sword—massive deregulation potential, but also a massive target on Tesla's back for the next election cycle.

What do you guys think? Is the "Musk Premium" in the Cathie Wood top 10 stocks peaking, or is she just making room for the next "Big Idea" before the 2026 midterms kick into high gear?