Kathy Wood is reshuffling her portfolio: SpaceX overtakes Tesla on the day of the historic IPO.
June 12 became a landmark day not only for Elon Musk, whose net worth exceeded $1 trillion for the first time, but also for ARK Invest's strategy. On the day of SpaceX's stock market debut, Cathie Wood made a decisive move: the fund acquired 3.29 million shares of SPCX at the offering price of $135, spending about $444 million. By the close of trading, this stake was already worth $529.7 million — a 19% gain in a single session. Simultaneously, ARK reduced its positions in Tesla, Advanced Micro Devices, Rocket Lab, Roku, and Baidu.
This move is not just a tactical reshuffling. SpaceX and Tesla are brainchildren of the same genius, but their market trajectories are now diverging dramatically. Tesla, long ARK's "golden asset," faces serious pressure: Chinese competitors are closing in, margins are shrinking, and Musk's political activity is alienating part of the consumer base. Wood, known for her faith in the company even in its darkest times, clearly sees more potential in the space direction.
Why is SpaceX ARK's new favorite?
Starlink, SpaceX's satellite internet business, is showing explosive growth and is the company's only profitable segment. ARK's venture division already holds about $1 billion in SpaceX, making it the largest position in that portfolio. Now, after the public market debut, the fund can increase its stake without the limitations of private capital.
However, investors should keep risks in mind. SpaceX's cumulative loss as of March 31 stands at $41.3 billion. Retail investors have been allocated 30% of the offering — 3 to 6 times higher than the usual level, indicating an attempt to attract a broad base of buyers. The question is whether the company can convert its ambitions into stable profits.
ARK's performance context
Since the start of the year, the flagship 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 Over the past 12 months, investors have withdrawn approximately $294 million in net funds from it. 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 playbook: entering promising companies at the earliest stages of their public life, as she did with Coinbase in 2021 and recently with CoreWeave. SpaceX has become the largest such investment. Whether it will become a lifeline for ARK or another costly mistake — only time will tell.
My expert opinion: The tilt toward SpaceX is not just a hedge against Tesla's weakness, but a deliberate bet on a long-term monopoly in space infrastructure. However, ARK risks repeating the mistake of 2021, when the fund loaded up on "the future" at inflated prices. If Starlink does not show sustainable profitability in the coming quarters, this move could become another blow to Wood's reputation.