Cathy Wood reshuffled her portfolio: SpaceX gets priority over Tesla on the day of the historic IPO
June 12 became a landmark day for the market: Elon Musk's space company SpaceX finally went public. And while investors were assessing the scale of the event, Cathie Wood, founder of ARK Invest, made a decisive move that clearly signaled a shift in her priorities. On the listing day, her fund purchased SpaceX shares worth approximately $444 million, while simultaneously reducing its stake in Tesla.
This is not just a rebalancing — it is a strategic signal. ARK acquired 3.29 million SpaceX shares at an offering price of $135. By market close, this stake was worth $529.7 million — a 19% increase in a single day. On the same day, the fund cut positions not only in Tesla but also in Advanced Micro Devices, Rocket Lab, Roku, and Baidu. It is evident that Wood is betting on a new asset that she believes has greater growth potential.
Why is Tesla losing ground in the ARK portfolio?
Tesla shares have long been a cornerstone of Cathie Wood's strategy. She has publicly supported the company even during its toughest times. However, the picture has now changed. Chinese competitors have nearly caught up with Tesla in terms of technology and production volumes, its profitability is declining, and Elon Musk's political activity is alienating some consumers. The electric vehicle market is becoming increasingly competitive, and Wood may see a ceiling for further growth in Tesla's market capitalization.
The situation with SpaceX is the opposite. The company's only profitable segment — Starlink satellite internet — is experiencing explosive growth. Wood first invested in SpaceX back in late 2023, and now this company has become the largest position in ARK's venture portfolio (about $1 billion). The $529.7 million purchase is a significant move even by ARK's standards. It is worth noting that SpaceX's cumulative loss stands at $41.3 billion as of March 31, and only 30% of the offering was allocated to retail investors — three to six times higher than the usual level.
Context of ARK's returns: risk or genius?
Since the start of the year, ARK's flagship ETF, ARK Innovation, 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 Over the past 12 months, investors have withdrawn approximately $294 million in net funds from it. According to Morningstar estimates, from 2014 to 2024, ARK has "destroyed" about $7 billion of its investors' funds.
In the IPO sector, Cathie Wood follows a single playbook: enter promising companies as early as possible. That is how ARK bought Coinbase shares shortly after its listing in 2021 and recently bet on CoreWeave. SpaceX has become its largest investment.
My view as an analyst: Cathie Wood's shift from Tesla to SpaceX is not just a reaction to market conditions but a deliberate move toward a riskier yet potentially more profitable asset. However, history has examples where early entry into a "story" turned into an expensive mistake. Will SpaceX achieve sustainable profitability and allow for steady earnings, or will it become another costly illusion for ARK? Only time will tell, but I would not rush to write Wood off: her bet on innovation has often paid off in the long term.