Tesla Shares Slip 1% as SpaceX IPO Valuation Spurs Bubble Concerns
TSLA•Tesla shares slipped 1% overnight after warnings that SpaceX’s IPO could seek a $1.8 trillion valuation and raise $75 billion, drawing dot-com bubble comparisons. The Direxion Daily TSLA Bull 2X Shares ETF fell 2% while the GraniteShares 2x Short TSLA Daily ETF gained 2%.
1. Tesla Share Movement
Tesla stock slipped 1% in overnight trading as speculative hype around SpaceX’s blockbuster IPO plan weighed on investor sentiment.
2. Bubble Comparisons
Former trader Larry McDonald warned that a projected SpaceX valuation of up to $2 trillion closely resembles the peak of the 2000 dot-com bubble.
3. ETF Responses
The Direxion Daily TSLA Bull 2X Shares ETF fell 2% while the GraniteShares 2x Short TSLA Daily ETF gained about 2%, reflecting investors’ directional wagers on Tesla.
4. Passive Fund Risks
McDonald cautioned that accelerated index inclusion could force retirement and passive funds to buy overpriced SpaceX shares, potentially distorting market valuations.



