Cathie Wood Bets on SpaceX: A Shift in ARK Portfolio Priorities on Listing Day
June 12 became a landmark date for the stock market and for Cathie Wood personally. On the day of SpaceX's long-awaited IPO, her ARK fund made a decisive move, acquiring shares of the space company worth approximately $444 million while simultaneously reducing its position in Tesla. This is not just a rotation—it is a clear signal of shifting priorities in the strategy of one of the most famous investors in innovation.
Numbers and Facts of the Deal
On the day of SpaceX's stock market debut, its shares surged 19%, and Elon Musk's net worth exceeded $1 trillion for the first time. ARK purchased 3.29 million shares of SpaceX at an offering price of $135. By the close of the trading session, this stake was already worth $529.7 million. Notably, on the same day, the fund cut its holdings in Tesla, as well as in Advanced Micro Devices, Rocket Lab, Roku, and Baidu. This suggests that Wood is not simply diversifying her portfolio but is purposefully shifting capital into an asset she considers more promising at this stage.
Why Tesla Is No Longer the Favorite?
Tesla shares have long been a cornerstone of ARK, and Wood publicly supported the company during its toughest times. However, the situation has now changed. Chinese competitors like BYD have nearly caught up with Tesla in sales volumes and technology. Musk's own profitability is declining, and his political activity is alienating some potential buyers. Under these conditions, betting on Tesla is becoming increasingly risky.
SpaceX: A New Leader in the Portfolio
The picture is the opposite with SpaceX. The company's only profitable division—satellite internet Starlink—is showing explosive growth. Wood first invested in SpaceX back in late 2023, and now this company has become the largest position in ARK's venture portfolio (about $1 billion). After the IPO, the fund can increase its investments on the public market, providing more flexibility and liquidity.
Context of ARK's Returns
Since the beginning of the year, the ARK Innovation ETF has grown only 1.61%, while the S&P 500 has gained about 9%. Over the past 12 months, investors have withdrawn approximately $294 million in net funds from it. According to Morningstar estimates, from 2014 to 2024, ARK "destroyed" about $7 billion of its investors' funds. Against this backdrop, the bet on SpaceX looks like an attempt to reverse the negative trend.
Wood follows one scenario: entering promising companies as early as possible. This was the case with Coinbase after its listing in 2021 and recently with CoreWeave. Now SpaceX has become the largest investment. The question is whether the company can achieve stable profits and live up to expectations, or whether this will become another costly mistake for ARK.
My analysis: The capital shift from Tesla to SpaceX is not just an emotional decision but a rational step in a changing competitive environment. Starlink is already generating real cash flow, and if SpaceX can monetize its space projects, this bet could pay off many times over. However, for retail investors following ARK, it is important to remember: high growth potential comes with enormous risks, especially given the company's loss of $41.3 billion.