SpaceX shares tumbled to $113.50 on Monday, slipping below their IPO price and marking a 13th drop in 16 sessions. This slide from the June peak of $225.64 erased more than $1.2 trillion in market value, an amount comparable to Tesla’s entire market cap. While most investors are retreating, Cathie Wood’s ARK Investment Management saw an opportunity.
On Monday, ARK scooped up 124,543 SpaceX shares worth about $14.1 million, spreading the purchase across several ETFs including ARK Innovation and ARK Space and Defense Innovation. The move contrasts with the broader market mood, reflecting Wood’s long-term confidence in SpaceX despite recent setbacks.
Starship’s Progress and Upcoming Milestones
SpaceX recently completed its 13th Starship test flight, achieving key milestones like deploying Starlink V3 satellites and safely splashing down with full telemetry data. Yet, the mission also exposed weaknesses the Super Heavy booster failed to land properly, dampening some enthusiasm. Still, analysts at Raymond James have maintained a strong buy rating with an $800 price target, forecasting over 600% growth from current levels.
Another catalyst is SpaceX’s impending public earnings release on August 4, followed by a possible unlocking of up to 911.5 million shares on August 6. Elon Musk and some insiders remain restricted for longer, but the flood of available shares could pressure the price further.
Meanwhile, ARK added about $8.6 million in Tesla shares during the same selloff but trimmed holdings in Deere and 10X Genomics. Veteran investor Ron Baron holds SpaceX as a major part of his portfolio, estimating the company could reach valuations between $20 trillion and $40 trillion over the next decade. For now, Wood’s aggressive buying amid the selloff signals her belief that this dip is a buying opportunity rather than a sign of a market top.
This content is for informational purposes and does not constitute financial advice.
