SpaceX stock and Tesla shares are doing something surprising: They are rising and falling together.
Shares of Elon Musk's rocket and AI company were down 0.6% in premarket trading at $163.25, while S&P 500 and Dow Jones Industrial Average futures were up 0.1% and 0.2%, respectively.
The move comes after a big Monday. SpaceX stock gained 7.2%, its best day since June 15, which was the second day of trading post-IPO.
Ahead of the record-setting capital raise, investors long wondered how having a second Musk company would impact Tesla's shares. There was some fear that Tesla investors would sell shares of the EV maker to invest in the space company.
That could have sent Tesla stock down, while sending SpaceX stock up.
It's still early, but that doesn't look to be the case. Tesla and SpaceX shares have traded in the same direction, with similar magnitudes, for the past four days. Through Monday trading, SpaceX stock was up 5.2% over the past four days. Tesla stock was up 7.9%. Both shares dropped twice and rose twice over that span.
Tuesday is looking like a fifth day for the pattern. Tesla stock was down modestly in premarket trading on Tuesday, just like SpaceX.
Why the stocks would trade together isn't a mystery. Both are tech-dominated AI companies. SpaceX wants to put AI data centers in space. Tesla wants to use AI to train cars to drive themselves and to create humanoid robots to complete labor-saving tasks.
Both, of course, have the same CEO, who has built a loyal retail-shareholder following.
To be sure, there will be reasons for the stocks to diverge. Tesla will report vehicle deliveries on Thursday, offering investors a chance to check in on the car business. For SpaceX, a lot of stock will come off lockup and Wall Street will pick up coverage for the first time.
Still, investors shouldn't be surprised to see a high correlation between SpaceX and Tesla stocks in the coming months.
So far, 11 analysts cover SpaceX, and six rate the shares Buy. The average analyst price target is $243. Eventually, there will be 40 or 50 analysts covering the company. None of the major banks that facilitated the IPO are covering the stock yet. They typically wait a few weeks after an IPO to launch coverage.
Write to Al Root at allen.root@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
June 30, 2026 08:11 ET (12:11 GMT)
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