ARK Invest, led by CEO Cathie Wood, executed a notable portfolio rotation on Thursday, increasing exposure to Tesla and Snowflake while significantly reducing its stake in Roku. The trades, disclosed in the firm's daily trading updates, underscore a deepening commitment to artificial intelligence and cloud infrastructure themes despite ongoing market turbulence around key holdings.
Tesla Rebuild After SpaceX-Related Selloff
ARK's exchange-traded funds purchased 54,815 Tesla shares, valued at approximately $21.9 million. The buys were split between the ARK Innovation ETF (ARKK) and the ARK Next Generation Internet ETF (ARKW). Tesla remains the top holding in ARKK at 9.7% of assets and the second-largest in ARKW at 8.6%.
This acquisition reverses recent selling tied to the market debut of Elon Musk's SpaceX. Last week, ARK trimmed its Tesla position as SpaceX shares began trading. As of June 12, ARK held roughly 3.29 million SpaceX shares across its funds. It remains unclear whether those shares were obtained via IPO allocation or open-market purchases.
Wood has consistently framed both Tesla and SpaceX as bets on transformative technologies. ARK's research projects Tesla shares reaching $2,600 by 2029, driven by opportunities in robotaxis, robotics, and energy storage beyond electric vehicles. The firm also sees SpaceX as a key player in AI infrastructure. In a recent newsletter, ARK Chief Futurist Brett Winton argued that orbital AI servers could give SpaceX a cost advantage over terrestrial competitors.
For more on the interplay between Tesla and SpaceX, see our analysis: Tesla Dips 2.4% as SpaceX IPO Draws Investor Capital; SPCX vs. TSLA Analysis.
Snowflake and Healthcare Buys Offset Roku Reduction
ARK also added approximately 149,700 shares of Snowflake, worth about $34.8 million, and increased its position in pharmaceutical giant Eli Lilly. These purchases were funded in part by a sharp reduction in Roku holdings. ARK sold a combined 721,279 Roku shares valued at roughly $99.6 million on Thursday, following earlier sales totaling over $93 million this week and an additional 239,267 shares on Wednesday.
The firm also exited positions in Strata Critical Medical and Twist Bioscience. The portfolio moves suggest growing conviction in AI, cloud computing, and healthcare innovation while reducing exposure to streaming and media businesses.
Musk Transactions and SpaceX Volatility
Separately, Tesla shares saw some support from news that Musk exercised stock options tied to approximately 303.96 million shares at a strike price of $23.34, surrendering 17.53 million shares to cover a tax bill of roughly $7.09 billion. Meanwhile, SpaceX shares have pulled back from initial post-IPO gains, which had surged as much as 67% above the $135 offering price.
Despite the pullback, ARK's latest trades indicate continued confidence in Musk's long-term vision. For context on the SpaceX IPO and its impact on Tesla, read: SpaceX IPO Complete: Tesla Merger Talk Intensifies as $3.7T Giant Looms.
ARK's strategy reflects a bet that AI and related technologies will drive future economic growth, even as near-term volatility persists. The firm's willingness to add to Tesla and Snowflake while cutting Roku highlights a clear thematic preference for data-intensive, AI-enabled platforms over consumer streaming services.
This article is for informational purposes only and does not constitute financial advice.
