Author: Ye Huiwen, Wall Street News
Renowned investor Cathie Wood ("Wood Sister")'s space exploration-themed ETF has initiated a position in Tesla for the first time, sparking market speculation that she is betting on a potential major restructuring within Musk's business empire.
According to Benzinga, the Ark Space & Defense Innovation ETF (ARKX) purchased 35,766 shares of Tesla stock on Wednesday, February 4th. Prior to this transaction, the fund held no Tesla shares. As of Thursday, this holding accounted for 1.99% of the ETF's total assets.
Although Wood's Ark Invest has long held significant Tesla positions through its other innovation-focused funds, this marks the first time it has been included in the space and defense-themed portfolio. This asset allocation adjustment comes at a sensitive time: recent reports indicate that SpaceX and xAI have completed a merger, and market discussions are heating up about Musk potentially seeking to further integrate this combined entity with Tesla.
This rare buying activity has not only drawn investor attention to the lack of public avenues for investing in SpaceX but has also sparked associations with potential capital operations. A merger between Tesla and the SpaceX/xAI entity would involve complex regulatory scrutiny and shareholder approval processes, and Ark Invest's move might be intended to position itself early.
Investment Logic: Betting on Merger or Positioning for Robotics
Regarding the motivation behind ARKX's new position, the market offers two main interpretations. First, Ark Invest might be building a stake in preparation for a potential future shareholder vote on whether Tesla merges with SpaceX/xAI. This purchase is seen by some observers as a direct bet on the integration of Musk's business empire.
Secondly, this investment decision could also be based on fundamental logic. The ETF lists "adaptive robotics" as one of its core investment themes. Given Tesla's significant development efforts on the Optimus robot and its commitment to using robotics technology to help build a "planetary civilization," this aligns with the macro vision of the space exploration fund. Therefore, even as an electric vehicle manufacturer, Tesla's potential in the robotics field provides justification for its entry into the space ETF.
Holdings Landscape: Ark's Broad Exposure to Musk-Linked Companies
This purchase further solidifies Ark Invest's position as a staunch supporter of Musk-linked companies. Tesla holds a core position in several other ETFs under Ark Invest. Specifically, Tesla is the top holding in the Ark Innovation ETF (ARKK), the Ark Next Generation Internet ETF (ARKW), and the Ark Autonomous Technology & Robotics ETF (ARKQ), with weightings of approximately 10.99%, 10.39%, and 9.93% respectively.
Furthermore, the Ark Venture Fund, which invests in both private and public companies, also holds stakes in Musk-related companies. Data as of January 31st shows SpaceX is the fund's largest holding at 11.23%; xAI is the second largest at 6.31%; and Tesla ranks thirtieth at 1.05%. These figures do not yet reflect the latest changes following the SpaceX and xAI merger.
Market Views: Rising Integration Expectations
Wall Street analysts are paying close attention to the possibility of Musk integrating his business empire. Investor Chamath Palihapitiya has publicly stated that he believes Musk will ultimately complete a "reverse merger," integrating SpaceX into Tesla, calling this his "contrarian prediction" for 2026.
Wedbush analyst Dan Ives recently also noted that the "opportunity is increasing" for Tesla to attempt a merger with the newly formed SpaceX/xAI entity. Ives believes this growing AI ecosystem will focus on both "space and earth," and that Musk not only has the motivation to consolidate forces, but that such integration is also logical. However, any such merger would require not only approval from Tesla shareholders but also must pass strict scrutiny from regulatory authorities.
SpaceX's Capital Path and Investment Scarcity
Currently, SpaceX remains one of the world's largest private companies, with extremely limited avenues for ordinary investors to participate. Besides funds under Ark Invest, investors currently gain indirect exposure to SpaceX mainly by holding shares of listed companies like Bank of America, Alphabet, and EchoStar.
Regarding SpaceX's IPO prospects, Musk has previously seemed to confirm plans but has not formally filed documents. Market speculation suggests that a potential IPO could occur as early as June 2026. Against this backdrop, Ark Invest's direct purchase of Tesla through its space ETF, whether based on optimism about robotics technology or expectations of a future merger, provides a new signal for investors seeking exposure to related assets.
