Kathy Wood reshuffles her portfolio: SpaceX gains, Tesla loses
Cathie Wood, CEO of ARK Invest, made a landmark move on the day of SpaceX's long-awaited IPO. Instead of increasing her position in Tesla, which had been her fund's "golden asset" for years, Wood made an aggressive bet on Elon Musk's space company. This decision is not just diversification, but a clear signal of shifting priorities in her portfolio.
On June 12, the day of SpaceX's stock market listing, the ARK fund purchased approximately 3.29 million shares of SPCX at a price of $135 per share. The total value of the transaction was about $444 million. By the close of trading, the stake had risen to $529.7 million — a 19% increase in a single day. On the same day, Wood reduced her stake in Tesla and exited part of her holdings in Advanced Micro Devices, Rocket Lab, Roku, and Baidu.
Why Tesla is Losing Ground
Tesla shares have long been the anchor of ARK's portfolio, and Wood publicly defended the company even during its toughest periods. But the situation has now changed. Chinese competitors like BYD and Nio have nearly caught up with Tesla in terms of sales volume and technology. The company's profitability is declining, and Elon Musk's political activity is alienating part of its loyal audience. Under these conditions, Wood, as an experienced analyst, decided to reallocate capital to what she sees as a more promising asset.
SpaceX, on the other hand, is showing explosive growth. The company's only profitable division — the Starlink satellite internet service — is expanding at a record pace. Wood first invested in SpaceX in late 2023, and the company has now become the largest position in ARK's venture portfolio (about $1 billion). The IPO allowed the fund to increase its investment on the public market.
Context of ARK's Performance
Since the beginning of the year, the ARK Innovation ETF has grown by only 1.61%, while the S&P 500 has gained about 9%. Over the past 12 months, investors have withdrawn approximately $294 million net from the fund. According to Morningstar estimates, from 2014 to 2024, ARK "destroyed" about $7 billion of its investors' capital. In this situation, the bet on SpaceX looks like an attempt to reverse the negative trend.
Wood is following a proven pattern: entering promising companies as early as possible. This was the case with Coinbase after its listing in 2021, and with CoreWeave. Now SpaceX has become the largest investment. Whether the fund will win from this bet or whether it will become another costly mistake — only time will tell.
My analysis: Cathie Wood is clearly betting on a future where the space economy and satellite technologies will dominate over electric vehicles. This is a bold but logical step, given that Tesla is no longer Musk's only "unicorn." However, investors should remember: SpaceX is an unprofitable company with a cumulative loss of $41.3 billion. Retail investors have been allocated 30% of the offering — three to six times the usual level. This is either an opportunity or a trap.