Kathy Wood rebalances her portfolio: SpaceX overtakes Tesla on the day of the historic IPO
A major strategy shift from Cathie Wood: on the day of SpaceX's long-awaited stock market debut, her ARK fund purchased approximately $444 million worth of the company's shares while simultaneously reducing its stake in Tesla. Both companies are owned by Elon Musk, but ARK analysts' priorities have shifted in favor of the space sector.
The transactions took place on June 12 — the day SpaceX shares surged 19%, and Musk's net worth exceeded $1 trillion for the first time. ARK acquired 3.29 million SpaceX shares at an offering price of $135, and by the close of trading, this stake was already worth $529.7 million. On the same day, the fund cut its positions in Tesla, as well as in Advanced Micro Devices, Rocket Lab, Roku, and Baidu.
Why Wood is turning away from Tesla
Tesla shares have long been a cornerstone of ARK. Wood publicly supported the company even during its toughest times. The situation has now changed: Chinese competitors have nearly caught up with Tesla, its profitability is declining, and Musk's political activity is alienating some buyers. Under these conditions, maintaining a maximum stake in the electric vehicle manufacturer is becoming risky.
SpaceX, on the other hand, is showing the opposite trend. The company's only profitable division — Starlink satellite internet — is growing at an explosive pace. Wood first invested in SpaceX 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.
The purchase of $529.7 million worth of shares is a significant move by ARK's standards. At the same time, SpaceX recorded a cumulative loss of $41.3 billion as of March 31. Retail investors have been allocated 30% of the offering — three to six times higher than the usual level.
ARK's performance context
Since the start 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 Over the past 12 months, investors have withdrawn approximately $294 million net from it. According to Morningstar estimates, from 2014 to 2024, ARK "destroyed" about $7 billion of its investors' funds.
In the IPO sector, Cathie Wood follows a single scenario: enter promising companies as early as possible. That's how ARK bought Coinbase shares shortly after its listing in 2021 and recently bet on CoreWeave. SpaceX has become the largest investment.
Analytical conclusion: Wood's strategy has always been volatile — she is willing to tolerate losses for the sake of potential explosive growth. The bet on SpaceX versus Tesla is not just a rebalancing but a signal that ARK sees higher monetization potential in space infrastructure over the next 5–10 years. The only question is whether SpaceX can achieve sustainable profitability and justify such an aggressive entry.