Cathie Wood’s ARK Invest purchased another 121,384 SpaceX shares across four ETFs following the stock hitting another record low in the previous session.
- ARK has now invested more than $475 million in SpaceX since its June IPO and has not sold any shares from its public ETFs.
- SpaceX shares remain nearly 30% below their IPO price and nearly 50% below their post-listing peak despite Thursday’s rebound.
- ARK’s long-term valuation model estimates SpaceX could eventually reach an enterprise value of $2.5 trillion to $3.1 trillion.
Shares of Elon Musk-led SpaceX (SPCX) edged higher in early morning trade on Thursday after Cathie Wood’s ARK Invest added more shares across four of its exchange-traded funds, extending a buy-the-dip strategy that has continued throughout the stock’s sharp decline since its public debut.
According to the ARK Invest Tracker, Wood purchased 121,384 shares of SpaceX across its flagship ARK Innovation ETF (ARKK), ARK Autonomous Technology & Robotics ETF (ARKQ), ARK Next Generation Internet ETF (ARKW), and ARK Space Exploration & Innovation ETF (ARKX). Wood also bought shares of Archer Aviation (ACHR) across the same set of funds.
SPCX’s stock rose as much as 1.2% in pre-market trade and was among the top trending tickers on Stocktwits at the time of writing. Retail sentiment around Musk’s company remained in ‘bearish’ territory over the past day, even as chatter rose to ‘high’ from ‘normal’ levels. Platform data showed an over 300% just in message volume in the last 24 hours.
SpaceX shares remain under pressure despite Thursday’s pre-market rebound. The stock is down nearly 30% from its IPO price and nearly 50% below the all-time high of roughly $226 reached shortly after listing.
Cathie Wood Continues Buying The Dip
Wood’s ARK Invest has consistently accumulated SpaceX shares since the company’s Nasdaq debut on June 12. The investment firm purchased roughly 3.29 million shares, valued at about $444 million, on the first day of trading, making it one of the largest single-day purchases in ARK’s history.
Rather than stepping back during the subsequent decline, Wood continued adding to the position. ARK bought approximately $32.5 million worth of shares after the stock fell below its IPO price in late June, followed by another $52.1 million during the week ending July 10. The purchases were funded in part through sales of other holdings, including Advanced Micro Devices (AMD), Roku (ROKU), and 10x Genomics (TXG).
With this week’s purchase, ARK’s cumulative post-IPO investment in SpaceX has climbed above $475 million. None of the firm’s four non-venture ETFs has sold any SpaceX shares since the listing.
As of this week’s disclosure, ARK’s total post-IPO investment in SpaceX exceeds $475 million, and none of ARK’s four non-Venture ETFs have sold a single SPCX share since the listing.
A Long-Term Bet On Elon Musk’s SpaceX
ARK first invested in SpaceX through its private venture fund in late 2023, where the aerospace company became the fund’s largest holding, according to Business Insider.
The firm’s valuation models estimate SpaceX could eventually reach an enterprise value between $2.5 trillion and $3.1 trillion by 2030. That outlook is largely driven by Starlink, currently the company’s only profitable business, alongside expectations for future growth in satellite communications and edge computing.
In an interview with Fox Business on Wednesday, Wood stated that the aerospace and satellite network pioneer could become the “most important company in global history” despite the stock’s recent slide and an upcoming $116 billion share unlock.
“We’re talking about not only really exploring a new world — the universe — in terms of its launch capabilities and helping others to do so as well, but also a global communications network.”
– Cathie Wood, CEO, Ark Invest
Will There Be A Tesla, SpaceX Merger?
The approach mirrors ARK’s long-running investment strategy with Tesla (TSLA), where the firm repeatedly added shares during major declines. Retail investors are watching for SpaceX’s first earnings report as a public company, expected on August 4.
Wall Street and investors are also watching for more commentary on a potential Tesla and SpaceX merger after Musk on the Tesla second quarter (Q2) earnings call stated that there will be “more and more” overlap between the companies, but declined to discuss any combination.
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