SpaceX shares fall 3.8% as Ark Invest adds $47.4 million stake

SpaceX shares fall after the midterms

The Coin Republic reports that SpaceX stock, traded as SPCX, ended Nov. 4 at $135.92, down 3.81% from $141.31. During the session, the shares were down as much as 5.3% and traded between $133.14 and $140.50. Volume reached 135.4 million shares, above the 103.1 million average. The article says the decline followed the U.S. midterm elections, in which Democrats won both chambers of Congress.

The source says Elon Musk had spent heavily supporting the opposing side. It adds that Tesla fell 3.3% on the same day. Reports cited by the article said the election result could bring congressional scrutiny of a rumored Tesla-SpaceX merger. The piece also says the broader market and bitcoin moved higher that day, so the weakness was described as limited to Musk-linked companies. SPCX finished just above its $135 IPO price and was the lowest close for the stock since August.

Ark Invest buys the dip

According to Benzinga, Cathie Wood’s Ark Invest bought about $47.4 million of SpaceX shares on Nov. 4. The purchase covered 348,406 shares and was spread across three exchange-traded funds. ARK Innovation ETF bought 224,483 shares, ARK Autonomous Technology & Robotics ETF bought 63,478 shares, and ARK Next Generation Internet ETF added 60,445 shares. The article says the value of the purchase was calculated using the closing price.

The same day, Ark sold about $17.5 million of Alphabet and Amazon stock. The article says the trade continued a pattern that began with SpaceX’s IPO, when Ark bought 3,291,184 shares on the stock’s first trading day in June. It also says the purchase drew attention in bitcoin news circles because SpaceX is one of the larger corporate holders of BTC.

Bitcoin’s rise lifts the value of SpaceX’s holdings

The Coin Republic says bitcoin rose about 6% on Nov. 4 to around $80,513. That increase raised the estimated value of SpaceX’s bitcoin reserve. The article says SpaceX holds 18,712 BTC, based on its SEC filings, and that the cost basis for those coins was $661 million. At roughly $80,500 per coin, the holdings would be worth about $1.51 billion. SpaceX reported digital assets of $1.57 billion as of Sept. 30.

The source says neither Tesla nor SpaceX bought or sold any coins in the third quarter. It adds that recent bitcoin news has still left investors with mixed views on where BTC may go next.

Analyst forecast and remaining risks

The article says Morgan Stanley analyst Adam Jonas kept an Overweight rating on SPCX and maintained a $300 price target. That target was about 121% above the Nov. 4 closing price. Jonas raised his 2027 revenue estimate to $175 billion, put 2028 revenue at $289 billion, and forecast operating income of $119 billion. He also moved his free-cash-flow break-even estimate forward to 2031 from 2035.

The source says risks remain. It notes SpaceX spent $19.6 billion on capital expenditure in the third quarter, which exceeded revenue of $14.58 billion. It also says the U.S. midterm outcome added political risk. The article closes by saying traders were watching whether Ark would keep buying on weakness and whether the next bitcoin news would affect views of SpaceX’s bitcoin treasury.