Elon Musk-led commercial spaceflight giant SpaceX‘s IPO could become a problem for Tesla Inc. (NASDAQ:TSLA) investors and shareholders as the market readies itself for the June IPO date.
Muskonomy
The upcoming IPO could take investors’ appetite away from Tesla and onto SpaceX, while also shifting Musk’s efforts and focus from the EV giant, experts cited by Bloomberg on Thursday said.
“This cannot be a positive for Tesla,” Joe Gilbert, a portfolio manager at Integrity Asset Management, cited in the report, said, expressing concern for Tesla shares.
Gilbert said that SpaceX will be Musk’s “new baby” at Tesla’s “expense” despite the billionaire having shown that he can manage multiple businesses at the same time in the past, the report said. The expert also said he expects SpaceX to have an “astronomical valuation.”
The IPO could also give investors an alternative way into the “Muskonomy,” which is a colloquial term used to describe all of Musk-led businesses, including Tesla, SpaceX, Brain-Chip Interface company Neuralink, as well as the tunneling startup The Boring Co.
SpaceX-Tesla Merger
Nicholas Colas, the co-founder of DataTrek Research, cited in the report, said that the IPO’s effects on Tesla shares wouldn’t be felt until at least three months following the listing, but it could initially benefit via S&P 500 passive investments. Colas then touted merging Tesla with SpaceX.
“If I were advising anyone, I'd be like, let's just get all this under one roof,” he said, outlining that Tesla’s investors hinged investments on Musk’s future goals and his leadership. “The best approach is to have one company,” Colas said.
Investor Dan Ives, who is the managing director of Wedbush Securities and a Tesla bull, has advocated for a merger between the two entities in the past. Most recently, Ives said that there was an 80% chance that the two companies would merge following SpaceX’s S-1 filings.
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