Katie Wood reshuffles her portfolio: SpaceX pushes out Tesla on the day of the historic IPO
Cathie Wood, CEO of ARK Invest, made a significant move on the day of SpaceX's long-awaited initial public offering. On June 12, as shares of Elon Musk's space company debuted on the stock exchange, Wood's fund purchased 3.29 million shares of SPCX at the offering price of $135, spending approximately $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 with the purchase, ARK reduced its positions in Tesla, as well as in Advanced Micro Devices, Rocket Lab, Roku, and Baidu. This move signaled a clear reallocation of capital toward what the fund's analysts consider a more promising asset. On the day of the IPO, Elon Musk's net worth exceeded $1 trillion for the first time, underscoring the historical context of the event.
Why is Wood changing priorities?
Tesla has long been ARK's flagship asset. Wood publicly defended the company during tough times, but the situation has now changed. Chinese competitors have nearly caught up with Tesla, its margins are declining, and Musk's political activities are alienating some consumers. On the other hand, SpaceX, and especially its satellite internet service Starlink, is showing explosive growth. It is the company's only profitable segment and is scaling rapidly.
Wood first invested in SpaceX in late 2023 as part of a venture round. The fund's stake in the company is now worth about $1 billion, making it the largest position in ARK's venture portfolio. Following the public listing, the fund can increase its investments on the open market, significantly simplifying position management.
ARK's performance context
Since the start of the year, ARK's flagship ETF, ARK Innovation, has gained only 1.61%, while the S&P 500 has risen by about 9%. Over the past 12 months, investors have withdrawn approximately $294 million in net funds from the fund.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. Against this backdrop, the bet on SpaceX looks like an attempt to reverse the negative trend.
Wood is following a proven strategy: entering promising companies as early as possible. This was the case with Coinbase in 2021 and more recently with CoreWeave. SpaceX has become her biggest bet. The question is whether the company can achieve stable profitability and live up to expectations, or whether this is another costly mistake for the fund. The market is sending an optimistic signal for now, but SpaceX's long-term sustainability remains in question.
My expert opinion: The capital shift from Tesla to SpaceX is not just an emotional decision but a clear signal of changing market priorities. Tesla is facing market saturation in electric vehicles and a price war, while SpaceX (especially Starlink) has virtually unlimited growth potential in the global internet segment. However, investors should remember: the space industry is a marathon, not a sprint, and profitability is not guaranteed in the short term.