Kathy Wood switched from Tesla to SpaceX: analysis of the ARK portfolio reshuffle
On June 12, the day of SpaceX's long-awaited IPO, Cathie Wood made a significant move: her ARK fund purchased approximately $444 million worth of SPCX shares while simultaneously reducing its position in Tesla. This is not just a rebalancing—it is a clear signal of shifting priorities in investment strategy.
Deal Details: Numbers Speak Louder Than Words
On the day SpaceX went public, its shares surged 19%, and Elon Musk's net worth exceeded $1 trillion for the first time. ARK acquired 3.29 million shares at the IPO price of $135. By market close, this stake was worth $529.7 million. On the same day, the fund trimmed its holdings in Tesla, Advanced Micro Devices, Rocket Lab, Roku, and Baidu. This is no coincidence—it is a systematic reassessment.
SpaceX has become the largest position in ARK's venture portfolio (approximately $1 billion). After going public, the fund can increase its investments without the restrictions typical of private investments.
Why Is Tesla No Longer the "Favorite Asset"?
Tesla has long been the anchor of ARK's portfolio. Wood publicly defended the company even in its darkest times. But now the situation has changed: Chinese competitors have nearly caught up with Tesla in volume, margins are declining, and Musk's political activity is alienating some customers. For ARK, which is already under pressure, holding such a position is becoming risky.
With SpaceX, the picture is the opposite. Its only profitable segment—Starlink satellite internet—is growing at explosive rates. The company's cumulative loss as of March 31 stood at $41.3 billion, but 30% of the IPO was allocated to retail investors—3 to 6 times higher than the usual level. Wood is clearly betting that Starlink will push SpaceX into profitability.
ARK's Return Context: A Survival Game
Since the start of the year, the ARK Innovation ETF has risen only 1.61%, while the S&P 500 has gained about 9%. Over the past 12 months, investors have withdrawn approximately $294 million from the fund. According to Morningstar, from 2014 to 2024, ARK "destroyed" about $7 billion of its investors' capital. This is not just bad statistics—it is a crisis of confidence.
Wood follows one playbook: enter promising companies as early as possible. That was the case with Coinbase right after its listing in 2021, and with CoreWeave recently. Now, it is SpaceX. The question is whether she can pull the fund out of its nosedive or if this is another costly mistake.
My analysis: Betting on SpaceX is a logical but extremely risky move. If Starlink does not achieve sustainable profitability within the next 2–3 years, ARK risks repeating the fate of many venture funds that overestimated the potential of the "next big thing." For now, it looks like an attempt to salvage reputation by leveraging the biggest name in the market.