Kathy Wood has shifted from Tesla to SpaceX: ARK's biggest bet on IPO day
On June 12, the day of SpaceX's historic IPO, Cathie Wood conducted a major rebalancing of the ARK Invest portfolio. The fund acquired approximately 3.29 million shares of the space company at an offering price of $135 per share, spending roughly $444 million. By the close of the trading session, this stake was already valued at $529.7 million — a 19% increase in a single day. Simultaneously, ARK reduced its positions in Tesla, Advanced Micro Devices, Rocket Lab, Roku, and Baidu. This is a clear signal: priorities are shifting.
Why Wood is Swapping Tesla for SpaceX
Tesla shares have long been an anchor of the ARK portfolio, and Wood has publicly supported the company even during its toughest times. However, the situation is now different. Chinese competitors have closely matched Tesla in sales volumes, business margins are declining, and Elon Musk's political activities are alienating part of the consumer base. Against this backdrop, SpaceX appears to be a much more promising asset. The company's only profitable segment — Starlink satellite internet — is showing explosive growth. Wood first invested in SpaceX back in late 2023, and this position has now become the largest in ARK's venture portfolio, valued at approximately $1 billion. With the public market entry, the fund gains the ability to increase its stake without the limitations of private capital.
ARK's Return Context and SpaceX Risks
Since the start of the year, the flagship 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 Over the past 12 months, investors have withdrawn roughly $294 million in net funds from the fund. According to Morningstar estimates, from 2014 to 2024, ARK "destroyed" about $7 billion of its investors' capital. The $529.7 million purchase of SpaceX is a bold move, especially considering the company's cumulative loss stands at $41.3 billion as of March 31. Retail investors have been allocated 30% of the offering, which is three to six times higher than the usual level — indicating strong demand but also elevated risk.
Wood is following a proven strategy: entering promising companies as early as possible. This was the case with Coinbase after its listing in 2021 and with CoreWeave recently. SpaceX has become the largest investment, and now the question is whether the company can achieve sustainable profitability. If it does, this could become one of ARK's best decisions in recent years. If not, it will be another costly mistake on the fund's long list.
My analysis: The capital shift from Tesla to SpaceX is not just about diversification; it is an acknowledgment that the space economy is beginning to generate real money faster than the electric vehicle sector. Starlink is already changing the rules of the game in telecommunications, and if ARK can maintain its position in the early stages of the public market, this could partially offset losses from past failed bets. However, the risk remains high: SpaceX is still unprofitable, and competition in space is intensifying.