Cathie Wood Doubles Down on SpaceX Amid Market Downturn; Elon Musk Warns Short Sellers

Despite a significant drop in stock price since its IPO and an impending $1160 billion (approximately NT$3.4 trillion) stock unlock, Cathie Wood, founder and CEO of ARK Invest, known as 'Cathie Wood,' reaffirms her high confidence in SpaceX, even describing the company as having the potential to become 'the most important company in global history.' During an interview with Fox News on the 23rd, Wood stated that ARK Invest has further invested approximately $80 million to increase its stake in SpaceX after its initial public offering (IPO). She emphasized that while the stock price has corrected significantly from its historical high, it remains in an uptrend compared to the IPO price and should not be evaluated based solely on recent declines. Space Transportation and Global Satellite Communication Networks Change the World Wood stated, 'If compared to the historical high, the stock price has indeed fallen; but compared to the IPO price, it has not fallen. We believe this company has the potential to become the most important company in history, and I mean global history.' She believes that the value of SpaceX is not only in its rocket launch business but also in establishing two capabilities that could change the global economic structure, including space transportation and global satellite communication networks. Wood pointed out that through its rocket launch capabilities, SpaceX not only drives human exploration of the universe but also helps other governments and companies enter the space market, playing a key role in expanding human activities in space. In addition, she is particularly optimistic about SpaceX's Starlink satellite network. She stated that the global telecommunications industry has long been highly dependent on local telecommunications companies, and companies often need to acquire local telecommunications companies to establish service networks when entering overseas markets. However, low-orbit satellite communication technology is disrupting this traditional business model. Wood stated that global satellite communication networks represent a new type of infrastructure, and in the future, cross-border network services will no longer need to rely on existing telecommunications systems in various countries. SpaceX is one of the important companies driving this transformation, so she believes the market currently underestimates its long-term development potential. Compared to the historical high, the stock price has cumulatively fallen by approximately 47% However, SpaceX's recent stock performance remains under significant pressure. According to market data, before the U.S. stock market opened on the 23rd, SpaceX's stock price was approximately $123.50 per share. Compared to the previous historical high of approximately $225, the stock price has cumulatively fallen by approximately 47%. As the stock price corrects, the company's market value has also evaporated by approximately $1.4 trillion compared to its peak, causing SpaceX's market value ranking to fall to the 8th largest listed company globally and for the first time fall behind Meta, losing the ranking advantage it once had over Meta during its initial listing period. In addition to the stock price correction, the market has recently focused on the upcoming $1160 billion stock unlock. Generally, after a large-scale restricted stock unlock, if early investors or insiders choose to sell their shares, it may increase market supply and further impact short-term stock performance. Therefore, investors generally closely monitor the trading situation after the unlock. In fact, Wood had previously stated in a May interview with Bloomberg that she expects SpaceX's stock price to remain highly volatile in the future, but she still has great confidence in the management capabilities of the founder, Elon Musk. At the time, Wood pointed out that Musk's greatest advantage lies in his ability to establish a highly vertically integrated corporate system, allowing his subsidiaries to form an ecosystem of shared technology, production, and talent resources. She believes that whether it is the electric vehicle company Tesla, the artificial intelligence company xAI, the brain-machine interface company Neuralink, or SpaceX itself, they all possess complementary technological advantages. This cross-domain integration capability is an important competitive advantage that other companies find difficult to replicate. Musk Warns: Institutions Shorting SpaceX Face Low Survival Rates On the other hand, facing some investors' continued bearish stance on SpaceX, Musk recently also issued a warning to short sellers through the social platform X. He stated that the survival rate of investment institutions that establish large short positions on SpaceX for the long term is very low. Musk wrote in a post: 'The survival rate of companies maintaining large short positions on SpaceX for the long term is very low.' This statement was also interpreted by the market as maintaining high confidence in the company's long-term growth prospects and attempting to convey positive signals about future development to the market.