Tesla stock gained, recovering slightly after a 6.6% decline on Friday.
SpaceX's anticipated $75 billion IPO this week is two times oversubscribed, with $150 billion in demand.
Elon Musk’s companies, Tesla and SpaceX, collaborate on AI, with prediction markets showing up to a 50% merger chance.
Tesla stock rose early Monday. It’s a huge week for the company, SpaceX, and Elon Musk.
Shares of the electric-vehicle maker shot up 4.6% on Monday, closing at $408.95.
The gain comes after a brutal 6.6% decline on Friday. Many tech stocks dropped following a strong jobs report that stoked fears of interest-rate hikes. The Nasdaq Composite fell 4.2%. It was also the second trading session since Broadcom reported relatively disappointing quarterly earnings. Its shares fell 19% over Thursday and Friday.
That was last week, however. This week is all about SpaceX’s record-setting IPO, which is expected to price on Thursday.
Tesla CEO Elon Musk, of course, runs SpaceX too. Investors are waiting to see if some investors will sell Tesla stock to buy SpaceX shares. That could create a headwind for Tesla stock, albeit a small one. Technical factors like that can create short-term price distortions. In the long run, earnings and growth expectations determine stock valuation.
The two companies have grown close, collaborating on AI applications and semiconductor manufacturing. What’s more, prediction markets put reasonable odds on a merger. Bets on Kalshi show a 50% chance of a merger before May 2027. Bets on Polymarket show 43% odds before Dec. 31, 2026.
Any merger will be after the SpaceX IPO. For now, Reuters reported that there is $150 billion in demand for the $75 billion SpaceX plans to raise. SpaceX didn’t respond to a request for comment about the IPO order book.
