Tesla Stock Sinks on Near SpaceX IPO

Tesla's stock price declines ahead of SpaceX's initial public offering, prompting speculation that investors are selling Tesla to capitalize on potential gains from Elon Musk's next entrepreneurial venture.

Tesla TSLA shares fell about 4% on June 10 to roughly $382, extending a weekly decline of around 6.6% as investors positioned ahead of SpaceX's IPO. The stock now trades roughly 20% below its December 2024 record high.

Analysts attribute part of the slide to capital rotation: retail holders appear to be trimming Tesla positions to fund SpaceX shares and 'catch a day-1 pop' in Elon Musk's next listing. SpaceX's Nasdaq debut is scheduled for June 12 at $135 a share, targeting a $1.77 trillion valuation that would exceed Tesla's market cap, and has reportedly drawn over $250 billion in demand.

The concern is structural rather than one-off: a second publicly traded Musk venture competes with Tesla for both investor capital and the CEO's attention. Markets will watch whether Tesla's decline reverses once the SpaceX listing clears, or whether it signals a lasting shift in how investors allocate across Musk's companies.