Key highlights:
- Ark Invest made fresh Tesla stock purchases across its four ETFs.
- This came right after TSLA dropped by 14% amid its disappointing quarterly earnings.
- Elon Musk said recently that a Tesla-SpaceX merger is possible in the future.
Ark Invest has shown confidence in another Elon Musk company, but this time not SpaceX. The firm added $51 million worth of Tesla shares after a recent market sell-off. This buy has been viewed as Cathie Wood setting up stakes ahead of a potential Tesla and SpaceX merger.
The investment also came just as TSLA recorded one of its biggest single-day declines in the past year. This happened due to its weaker-than-expected second-quarter earnings.
Tesla stock falls as Ark Invest buys the dip
TSLA closed Thursday at $319.69 after it fell by 14.52%. This was a ripple effect of the release of the company’s latest quarterly results. The earnings report missed Wall Street’s adjusted earnings expectations. There were also concerns about its shrinking margins and price discounts.
Ark Invest saw this as a buying opportunity and increased its position, according to its latest disclosure. The firm bought 160,151 TSLA shares worth $51.2 million.
Here is every move that Cathie Wood and Ark Invest made in the stock market today 7/23 pic.twitter.com/f2qHkLBUoN
— Ark Invest Tracker (@ArkkDaily) July 24, 2026
The purchases were made in tranches across four of its ETFs. The largest buy was made through the ARK Innovation ETF (ARKK). The fund bought 98,782 shares valued at $31.58 million.
The ARK Autonomous Technology & Robotics ETF (ARKQ) added 30,396 shares, the ARK Next Generation Internet ETF (ARKW) purchased 21,048 shares, and the ARK Space Exploration & Innovation ETF (ARKX) bought another 9,925 shares.
This follows Ark’s consistent purchases of SPCX shares, showing the firm’s interest in both Elon Musk companies.
SpaceX merger talk keeps investors watching
During Tesla’s earnings discussion, Elon Musk acknowledged that the two companies are working together more closely than ever before. He did not confirm merger plans, but he also did not rule out the possibility.
Musk shared that there is an overlap between Tesla and SpaceX because of their joint projects. He also added that a decision on a merger would have to go through the proper process.
“As evident from the significant joint initiatives with SpaceX on many fronts, the overlap between the companies is increasing. We can’t discuss a merger of the companies during the earnings call; it must be done through the proper process.”
— Elon Musk
Notably, Gene Munster, managing partner at Deepwater Asset Management, said there is a 90% chance that the companies could merge in the next few years.
Experts had opined that combining the two firms would be huge for technology. The merger could establish a company that provides services on electric vehicles, robotics, AI, energy storage, satellite communications, manufacturing, and space exploration.
Tesla already supplies batteries and manufacturing technology for some SpaceX projects. Both companies are also working together on Terafab, a manufacturing facility focused on AI chips.
JPMorgan, on the other hand, is not a fan of the merger. They pointed to a “practical bottleneck” in securing regulatory approval for the two companies. They highlighted China as a major source of concern in the matter of national security due to SpaceX’s ties to the U.S government.
Cathie Wood’s company also increased its stake in Circle Internet Group, which is another favorite for the investment firm. Ark bought $8.09 million worth of CRCL stock.
In addition, ARKF added 48,377 shares of Securitize Corp. The stock closed at $7.30, down 4.82%, putting the value of the purchase at $353,152.
Source:: Ark Invest Bets $51M on Tesla Amid Rising SpaceX Merger Hopes