Cathie Wood's funds bought 3 million shares of SpaceX. This is one of ARK's biggest moves in years.

ARK Invest’s investment funds, managed by Cathie Wood, have purchased more than 3 million shares of Elon Musk’s space company SpaceX, according to Barron’s. To finance this transaction, ARK partially sold other assets, reducing, in particular, its stake in automaker Tesla, which is also led by Musk.

By the end of June 12—SpaceX’s first day of trading on the stock exchange—Cathie Wood’s ARK Invest funds collectively held approximately 3.29 million shares of the company. This purchase was one of Wood’s most significant moves in the public market in recent years, according to Barron’s. The shares were distributed among several ARK entities. The largest holder was the flagship ARK Innovation ETF (ARKK), which held nearly 1.69 million shares, valued at $325 million at the close of trading on Monday, June 15.

SpaceX shares accounted for the largest percentage of the ARK Space & Defense Innovation ETF’s portfolio, representing 6.8% of its total assets. This fund specializes in companies developing space technology, orbital infrastructure, satellite internet, and defense innovations. Two other thematic funds managed by Cathie Wood—the ARK Autonomous Technology & Robotics ETF (focused on robotics, autonomous transportation, and automation) and the ARK Next Generation Internet ETF (investing in cloud technologies, AI, and the internet platforms of the future)—have also invested in SpaceX, making its shares one of their key holdings.

It is not yet clear whether the SpaceX shares were obtained through a subscription as part of the IPO before trading began or were purchased on the open market after the market opened, Barron’s notes. The price at which ARK acquired the shares is also unknown.

To make room for the new investment, ARK’s funds have partially reduced their holdings in other stocks—including Tesla, according to Barron’s. However, Cathie Wood’s company still holds a large position in the automaker, considering it its strongest bet on artificial intelligence and autonomous driving technologies. In the flagship ARK Innovation ETF, Tesla shares remain the top holding, accounting for 10.4% of the portfolio.

According to Barron’s, the investment firm ARK views Tesla and SpaceX not merely as industrial enterprises, but as large-scale technology platforms. According to ARK, as cited by Barron’s, the combination of in-house manufacturing facilities, proprietary software, and artificial intelligence will enable Musk to transform the production of complex equipment into a highly profitable digital business.

Cathie Wood is known for her support of high price-to-earnings ratios, which conservative investors find difficult to justify. ARK is confident that Tesla is not just about electric vehicles, but is the future leader in robotaxis, automation, and energy storage systems. According to the company’s forecasts, the automaker’s stock will soar to $2,600 by 2029, representing a 1,254% increase—a sixfold rise—from its closing price on June 15.

Similarly, according to Barron’s, SpaceX, as envisioned by ARK, is not just a rocket manufacturer but also a large-scale business operating in the fields of satellite internet, defense, and orbital infrastructure. Even before its IPO, the space company was the largest holding of the private venture capital fund ARK Venture Fund: as of March 31, it accounted for about 17% of the fund’s net assets. Although SpaceX’s $1.77 trillion valuation during the IPO seems extreme given its current revenues, ARK considers it “supported by a realistic growth scenario,” Barron’s summarizes.

This article was AI-translated and verified by a human editor