Cathie Wood's ARK Invest exchange-traded funds increased their holdings in Space Exploration Technologies NASDAQ:SPCX and Tesla NASDAQ:TSLA, purchasing about $23 million worth of shares during Monday's trading session.
ARK Invest bought 124,543 shares of Space Exploration Technologies valued at about $14.3 million after Space Exploration Technologies shares fell about 1.4%. The firm also acquired 27,864 Tesla shares worth roughly $8.7 million as Tesla stock declined about 1.2%.
The purchases came as both companies face near-term challenges. Space Exploration Technologies has traded below its $135 initial public offering price despite completing its first post-IPO Starship and Super Heavy test flight on July 24. Investors are also watching the Aug. 6 lock-up expiration, when about 911.5 million insider-held shares could become eligible for sale, as well as the company's first quarterly earnings report scheduled for Aug. 4.
Tesla has remained under pressure following mixed fiscal second-quarter results released last week. The electric-vehicle maker reported adjusted earnings of $0.33 per share, below analysts' expectations of $0.53, while revenue increased 26% year over year to $28.24 billion, exceeding consensus estimates. The earnings report and plans for higher capital spending weighed on Tesla shares, prompting several analysts to lower their price targets.