Wood's Strategic Pivot: SpaceX Ousts Tesla from ARK Portfolio on Historic IPO Day
Cathy Wood, the renowned manager of ARK Invest, made a significant move on the day of SpaceX's long-awaited stock market debut. On June 12, as SPCX hit the exchange, her fund purchased shares of the space company worth approximately $444 million, while simultaneously substantially reducing its position in Tesla. Both companies belong to Elon Musk, but the priority allocation in Wood's portfolio has changed dramatically.
On the day of the IPO, SpaceX shares surged 19%, and Musk's net worth exceeded the $1 trillion mark for the first time. ARK acquired 3.29 million SpaceX shares at an offering price of $135. By the close of the trading session, this stake was already worth $529.7 million — a nearly 20% increase in a single day. On the same day, the fund cut its stakes in Tesla, Advanced Micro Devices, Rocket Lab, Roku, and Baidu.
Why is Tesla losing ground?
Tesla shares have long been ARK's primary asset, and Wood publicly supported the company even during its toughest times. However, the situation has now changed: Chinese competitors have nearly caught up with Tesla in terms of volume and technology, its profitability is declining, and Musk's political activity is alienating some consumers. Against this backdrop, SpaceX looks far more attractive.
SpaceX's only profitable division — the Starlink satellite internet service — is showing rapid growth. Wood first invested in SpaceX at the end of 2023, and the company has now become the largest position in ARK's venture portfolio (approximately $1 billion). Following the IPO, the fund can increase its investments on the public market.
Context of ARK's returns
Since the beginning of the year, the flagship 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 Over the past 12 months, investors have withdrawn approximately $294 million net from the fund. According to Morningstar estimates, from 2014 to 2024, ARK "destroyed" about $7 billion of its investors' funds.
In the IPO space, Cathy Wood follows a single strategy: enter promising companies as early as possible. ARK bought Coinbase shares shortly after its listing in 2021, and recently the fund bet on CoreWeave. SpaceX has now become its largest investment.
Cryptalist Analysis: Shifting focus from Tesla to SpaceX is not just a portfolio reshuffle, but a signal that Wood is making a long-term bet on space infrastructure and satellite technology. Tesla, despite its leadership, faces market saturation and fierce competition. The only question is whether SpaceX can achieve stable profitability, or whether this will become another costly mistake for ARK. Given SpaceX's current loss of $41.3 billion, the bet is extremely risky, but the potential reward could be colossal.