Wood's Strategic Pivot: SpaceX Ousts Tesla from ARK Portfolio on Historic IPO Day
June 12 became a landmark date for the stock market: on the day of SpaceX's stock market debut, Cathie Wood, known for her unwavering faith in Tesla, executed a decisive strategic maneuver. Her ARK fund purchased shares of the space company worth approximately $444 million, while simultaneously reducing its stake in Tesla. This is not just a rebalancing — it is a clear signal of shifting priorities within Elon Musk's empire.
On the day of the IPO, SpaceX showed impressive growth — shares surged by 19%. ARK acquired 3.29 million shares at the offering price of $135, and by market close, this stake was already valued at $529.7 million. On the same day, the fund cut positions not only in Tesla but also in Advanced Micro Devices, Rocket Lab, Roku, and Baidu. The decision appears particularly striking against the backdrop of Musk's net worth surpassing $1 trillion for the first time.
Why is Wood betting on SpaceX instead of Tesla?
Tesla shares have long been a cornerstone of the ARK portfolio. Wood publicly supported the company even during its toughest times. However, 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 consumers. Wood, as an experienced analyst, sees that the growth potential of the EV giant is no longer what it once was.
With SpaceX, the picture is diametrically opposite. The company's only profitable segment — Starlink satellite internet — is showing 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). After the IPO, the fund can increase its investments on the public market.
The purchase of shares worth $529.7 million is a significant step even by ARK's standards. Notably, 30% of the offering was allocated to retail investors, which is three to six times higher than the usual level. This indicates strong demand and, likely, institutional recognition of SpaceX's long-term potential.
ARK's return context: betting on growth against the market
Since the beginning of the year, the 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 Over the past 12 months, investors have withdrawn approximately $294 million in net funds from the fund. According to Morningstar estimates, from 2014 to 2024, ARK "destroyed" about $7 billion of its investors' capital. Wood is clearly searching for a new "gold mine," and SpaceX appears to be the leading candidate.
In the IPO sector, Cathie Wood follows a single playbook: enter promising companies as early as possible. This is how ARK bought Coinbase shares shortly after its listing in 2021, and recently the fund bet on CoreWeave. SpaceX has become the largest investment. The question is whether the company can achieve stable profits and live up to expectations, or whether this will become another costly mistake for ARK.
My analysis: This pivot is a classic example of "alpha hunting" in an environment where old growth drivers have exhausted themselves. SpaceX, with its monopoly position in the space industry and growing Starlink, offers a narrative that the market is ready to buy. However, risks remain high: SpaceX's cumulative loss of $41.3 billion as of March 31 is no joke. Wood is betting on the future, but the price for this ticket must be paid now.