Tesla stock fell as SpaceX’s IPO priced at $135 per share, valuing Elon Musk’s space venture at over $2 trillion.
Tesla (TSLA) shares declined more than 2% to session lows following SpaceX’s (SPCX) Nasdaq debut, which opened at $150 per share. The electric vehicle maker’s stock drop coincided with SpaceX’s highly anticipated IPO, priced at $135, making Elon Musk a trillionaire.
The broader megacap tech sector, including Tesla, has faced pressure in June, with over $2 trillion in market capitalization erased as investors shifted into cyclical and defensive stocks. Analysts suggest some investors may have sold Tesla shares ahead of the IPO to free up capital.
Wall Street speculates Tesla and SpaceX could merge in the future, given Musk’s leadership and shared focus on AI. While Tesla remains profitable, SpaceX’s cash burn for ambitious projects contrasts with its profitable satellite business.