Cathie Wood’s $20 Million SpaceX Gamble Yields Rapid Gains

The latest acquisition brings ARK’s total exposure to the aerospace firm to over $475 million. During Tuesday’s session, SpaceX shares climbed $8.52 to reach $128.37, providing an unrealized gain of approximately $1.45 million on the firm’s most recent purchase. This rebound partially offset a 3.34% decline observed on Monday, though the stock remains nearly 43% below its record high of $225.64.

ARK Innovation ETF led the buying spree with a $11.70 million stake, while the firm’s Autonomous Technology & Robotics, Next Generation Internet, and Space Exploration & Innovation funds also expanded their holdings. These moves reflect a broader strategy of aggressive accumulation, totaling 318,257 shares purchased between July 17 and July 20. Despite the volatility, institutional sentiment remains largely optimistic, with analysts maintaining a median price target of $213.50.

However, significant headwinds persist for the newly public company. Short sellers have capitalized on the post-IPO retreat, accumulating roughly $4 billion in paper profits, with approximately 30% of freely traded shares currently shorted. Further pressure may arrive on August 19, when the post-IPO lockup expires, potentially flooding the market with 900 million additional shares.