Tesla stock price has fallen sharply as SpaceX’s record initial public offering drew investor attention and capital away from the electric vehicle maker, marking a significant shift in how retail investors access Elon Musk’s ventures. Tesla shares dropped 4% on Wednesday, June 10, to $381.59, with the stock declining 6.6% over the week leading up to SpaceX’s June 12 trading debut on the Nasdaq.
Investor Gary Black, managing director of The Future Fund, attributed some of Tesla’s decline to broader weakness in long-duration tech stocks amid a higher-for-longer interest-rate environment. However, he identified a more direct source of selling pressure: “I believe many retail investors buying $SPCX this week will lighten up on their TSLA positions to fund their SPCX shares,” Black said, according to reporting from Yahoo Finance.
SpaceX’s IPO generated unprecedented demand, with the offering attracting over $250 billion in investor interest—more than four times the 555.6 million shares available at the $135 per-share price. The company raised $75 billion at a valuation of approximately $1.77 trillion, making it the largest IPO in history and eclipsing Saudi Aramco’s $29.4 billion debut in 2019.
The “Muskonomy” Premium Under Pressure
For years, Tesla represented the only publicly traded vehicle for retail investors seeking exposure to Elon Musk’s companies, a dynamic that analysts say has now shifted. Wall Street observers noted that Tesla shares dropped 8% over five trading days following the SpaceX IPO announcement in May, with the stock’s elevated valuation—approximately 195 times forward earnings—partly dependent on investor appetite for Musk-led ventures, according to Investing.com.
The emergence of SpaceX as a publicly traded alternative creates what analysts describe as direct competition for capital within the “Muskonomy,” the ecosystem of Musk’s companies. This capital rotation has raised concerns about both the division of management attention between Tesla and SpaceX and the availability of an alternative investment vehicle for those seeking Musk exposure.
Black cautioned that SpaceX’s IPO valuation appears stretched, estimating it at 300 times 2025 EBITDA and 120 times projected 2026 EBITDA of $15 billion. Despite expecting a strong opening-day rally—he said Goldman Sachs and Morgan Stanley could “engineer a Day 1 pop” for SpaceX investors—Black advised waiting for the stock to decline post-IPO: “I would wait for the stock to come back to earth post-IPO before buying shares,” he said.
SpaceX began trading on the Nasdaq under ticker SPCX on June 12, 2026. The stock was expected to surge more than 25% from its IPO price in early trading, according to Reuters, as demand from retail investors who had allocated capital by selling other holdings sought to establish positions in the aerospace company.
Sources
- Yahoo Finance / Stocktwits — Tesla stock decline to $381.59 on June 10, analyst Gary Black’s comments on retail rotation from Tesla to SpaceX, SpaceX IPO demand figures exceeding $250 billion
- Reuters — SpaceX IPO pricing at $135 per share, $75 billion raise, $1.77 trillion valuation, Nasdaq trading debut on June 12
- Investing.com — Tesla shares declining 8% over five trading days following SpaceX IPO announcement, Tesla’s valuation at 195 times forward earnings, analyst commentary on “Muskonomy” premium and capital competition
- Vantage Markets — Tesla stock falling 6.6% in the week before SpaceX IPO on June 12
