Tesla Shares Drop 4% as SpaceX IPO Demand Tops $250B and Merger Talks Stir
TSLA•Retail investors sold Tesla shares to fund purchases in SpaceX's IPO, contributing to a 4% slide that extended losses into a second session and put shares at $381.59. SpaceX's $75 billion offering of 555.6 million shares at $135 has drawn over $250 billion in demand and reignited merger discussion around Tesla's 19 million‐share stake.
1. Selling Pressure from SpaceX IPO
Retail investors have offloaded Tesla shares to fund purchases of SpaceX's IPO, driving a 4% decline to $381.59 over two sessions. The pullback coincided with broader weakness in long-duration tech stocks amid elevated interest rates.
2. Oversubscription and IPO Terms
SpaceX is selling 555.6 million shares at $135 each, aiming to raise $75 billion at a $1.8 trillion valuation. Demand has surged past $250 billion—more than four times the shares available—fueled by expectations of a significant first-day pop.
3. Renewed Merger Speculation
The IPO frenzy has reignited discussion of a potential Tesla-SpaceX merger, as Tesla holds 19 million SpaceX shares and both firms share AI and chip development initiatives. Analysts suggest Tesla shareholders could control up to 66% of a combined entity.
