Tesla Shares Rise 2% After SpaceX IPO Opens at $150, Raises $75B
TSLA•Tesla shares recovered to finish 2% higher this week, marking a 4% gain in its best week since early May after intraday pressure from SpaceX’s IPO debut. Fund manager Gary Black warned the record $75 billion offering could siphon investment from Tesla shares, while merger speculation reignited around noted synergies.
1. Intraday Pressure and Recovery
Tesla shares slid during intraday trading as investors shifted funds toward the $75 billion SpaceX IPO, but recovered to close 2% higher, resulting in a 4% gain on the week—its best performance since early May.
2. SpaceX IPO Debut
SpaceX shares opened at $150, an 11% premium to its $135 offering price, climbed as much as 30% intraday, and closed up 19%, briefly valuing the company above $2.2 trillion and boosting Elon Musk’s net worth above $1 trillion.
3. Fund Manager Warning
Gary Black cautioned that funding for SpaceX’s record IPO would likely come from long-duration stocks like Tesla, contributing to near-term pressure on its shares, which are down 18% year to date compared to the Nasdaq 100’s 11% gain.
4. Merger Speculation
Despite differing business models and risk profiles, Wedbush predicts a Tesla-SpaceX merger within a year, while SpaceX leadership acknowledges synergies but makes no commitment, and fund managers dismiss the prospect as unfounded.
