New York, June 10, 2026 – Tesla (TSLA) shares declined again on Tuesday, sliding 3% to $396.68, and continued to edge lower in premarket trading, dropping another 1.26% to $391.68 ahead of Wednesday's open. The move comes as SpaceX's highly anticipated initial public offering draws outsized investor demand, creating a fresh avenue for exposure to Elon Musk's ventures and raising concerns about capital rotation away from high-growth tech stocks like Tesla.
SpaceX's IPO, valued at $75 billion, has attracted over $250 billion in investor orders, according to Reuters, representing demand 3.5 to 4 times the supply before pricing. The offering is set to list on the Nasdaq under the ticker SPCX on Friday, with shares priced at an estimated $135 each, targeting a valuation of roughly $1.75 trillion. This marks one of the largest IPOs in history and shifts the spotlight from Tesla to another Musk-linked entity.
For Tesla, the SpaceX IPO introduces a new dynamic. Investors have long viewed Tesla as the primary liquid bet on Musk's vision, but the emergence of SpaceX as a public stock could siphon off funds earmarked for growth-oriented AI and tech trades. Analysts suggest that some institutional investors may rebalance portfolios by trimming positions in Tesla, Nvidia, or other high-multiple names to participate in the SpaceX offering.
Tesla's recent financial performance offers a mixed picture. The company reported first-quarter vehicle production of 408,386 units and deliveries of 358,023, along with 8.8 gigawatt-hours of energy storage deployment. Revenue for the quarter stood at $22.39 billion, with net income attributable to common stockholders of $477 million. Despite these figures, the company's outlook remains heavily tied to its investments in artificial intelligence, autonomous driving, and robotics, including Full Self-Driving (FSD) technology and the Optimus humanoid robot. Tesla expects 2026 capital expenditures to exceed $25 billion as it ramps up spending on AI compute and manufacturing.
The SpaceX connection also carries direct business implications. Tesla disclosed $87 million in revenue and $65 million in cost of revenue from sales of Megapack energy storage systems to SpaceX in the first quarter, underscoring a tangible operational link between the two companies. However, the broader market context remains challenging. Dow futures fell 0.74%, S&P 500 futures slipped 0.81%, and Nasdaq 100 futures lost 1.28% ahead of the May Consumer Price Index (CPI) release, which could influence Federal Reserve policy. A hotter-than-expected reading might reinforce a hawkish stance, weighing on growth stocks that rely on long-term profit expectations.
Valuation concerns also come into focus. SpaceX's IPO is priced at approximately 94.53 times 2025 sales, far above Tesla's 16.73 times, according to Reuters. “Its fundamentals are really tough,” said Ed O’Gorman, CEO of River Wealth Advisors, noting the high bar for SpaceX's valuation. Yet, this does not necessarily make Tesla cheap, and investors are closely watching how the market absorbs the SpaceX debut without triggering broader selling in growth names.
Tesla's inclusion in major indices like the Nasdaq 100 and S&P 500 amplifies the impact of its stock movements on index funds and ETFs. Selling pressure in high-growth technology could spill over beyond Tesla, particularly if the SpaceX IPO stumbles or if the broader market reacts negatively to economic data. Conversely, a strong SpaceX launch might boost the Musk brand and temporarily lift sentiment, but the risks tied to trade policy, tariffs, supply-chain costs, and regulatory scrutiny over Autopilot and FSD remain significant headwinds for Tesla.
As the week progresses, investors will monitor Thursday's SpaceX pricing and Friday's Nasdaq debut to gauge whether demand can be met without triggering a selloff in the big-growth names that Tesla depends on. The outcome could set the tone for the broader tech sector in the coming weeks.
