New York, June 12, 2026, 10:02 EDT
- SpaceX set its price at $135 a share for 555.56 million shares, bringing in $75 billion. That puts its valuation around $1.77 trillion.
- Tesla shares slipped early Friday, with TSLA down 0.7% at $396.24. The stock’s been under pressure as some investors might be selling to raise cash for SpaceX.
- Oppenheimer began coverage of SpaceX with an “outperform” and set a $190 price target. Morningstar has a much lower valuation at $780 billion. Reuters
Tesla shareholders woke up Friday tracking two Musk stocks: TSLA—already seeing swings after several days of pressure—and SpaceX, now heading for a Nasdaq open as “SPCX”. SpaceX is expected to draw retail buyers as it launches what will be the biggest IPO on record. Tesla last traded at $396.24, off 0.7%. Some earlier reports tied the drop to investors needing cash for the SpaceX IPO. Barron’s
SpaceX has set its IPO price at $135 a share, selling 555.56 million shares and pulling in $75 billion. Reuters said the deal gives the rocket, satellite and AI firm a $1.77 trillion valuation, putting it ahead of Tesla and Meta Platforms on market value when trading starts.
Tesla shares are linked to SpaceX in the market thanks to their shared founder, their base of retail fans, and bets on future tech. Tesla dropped 4% to $381.59 on Wednesday. Gary Black at The Future Fund said many retail traders buying SpaceX this week “will lighten up on their TSLA positions to fund their SPCX shares.” TradingView
Tesla dropped close to 10% last week but came off lows after SpaceX’s IPO order book closed, Barron’s said, with some traders pointing to the bookbuild ending as a sign that selling in Tesla might let up. The piece also pointed out SpaceX’s big retail allocation worried some in the market, since that retail portion came to about 2% of Tesla’s market cap.
SpaceX is taking an unusual route with its IPO, setting 30% of shares for retail buyers, Reuters said. Musk will keep 82% of the voting power after the deal. “The real test will be how the market digests the IPO over the next several weeks, not just one day,” Adam Sarhan, CEO of 50 Park Investments, told Reuters. Reuters
Wall Street disagrees on how much room SpaceX has to run after its record pricing. Oppenheimer was first among big brokerages to start coverage, giving SpaceX an “outperform” and a $190 target. Analyst Timothy Horan said, “We see it as the only vertically integrated AI company with the required capital, data, LLMs, hardware, manufacturing and engineering talent.” New Street Research set a $165 target. Morningstar’s valuation came in at $780 billion, under half the IPO value. Reuters
The listing is moving markets outside Tesla. Hedge funds trimmed big U.S. tech holdings before the debut, JPMorgan data cited by Reuters showed. All the Magnificent Seven stocks have dropped since last Friday, including Tesla. The Roundhill Magnificent Seven ETF is down over 2.4% since June 5 as some investors moved out of risk before the SpaceX launch.
Regulators and exchanges are working to keep trading smooth on day one. Reuters said asset managers wanting to launch leveraged SpaceX ETFs were told to wait until Monday. “There is a lot at stake; these products could end up holding a total of more than $10 billion” in assets, Tradr ETFs’ Matt Markiewicz said. For Tesla, that puts the focus on Friday — how the market trades could decide if the SpaceX launch is a short-term cash crunch or sets up a lasting alternative for investors looking for Musk exposure. Reuters
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