Tesla Inc (TSLA.O) shares gained 0.5% to 441.50 Thursday amid reports that Elon Musk’s SpaceX is selecting investment banks for a potential IPO 1.
The cross-pollination between Musk’s companies creates potential value unlocks for Tesla investors, as SpaceX’s public debut could provide liquidity for Musk’s Tesla holdings while showcasing his broader technology ecosystem.
Key Takeaways
- Tesla rises 0.5% on SpaceX IPO banking reports
- Morgan Stanley leads underwriter competition for SpaceX offering
- Musk empire synergies drive investor “Elon fever” sentiment
Market reaction & context
Tesla’s modest gain comes as the stock trades near three-month lows following recent analyst downgrades. The electric vehicle maker’s shares have underperformed the broader market as investors await fourth-quarter earnings results expected later this month.
SpaceX’s potential public offering has generated significant Wall Street interest, with Morgan Stanley (MS) reportedly leading the competition among investment banks 4. The same bank previously underwrote Tesla’s 2010 IPO, highlighting Musk’s long-standing relationship with the firm.
Detailed analysis
The SpaceX IPO speculation comes as investors demonstrate renewed appetite for Musk-related ventures, with analysts describing “Elon fever” hitting Wall Street 7. This enthusiasm reflects confidence in Musk’s ability to execute across multiple high-growth technology sectors simultaneously.
Recent insider activity supports this bullish sentiment, with Musk purchasing more than 2.5 million Tesla shares worth approximately 1 billion in September 8. The CEO’s continued investment in his own company signals confidence in Tesla’s long-term prospects despite near-term headwinds.
Outlook & management perspective
During a recent all-hands meeting, Musk told Tesla workers to “hang on,” arguing that Wall Street struggles to understand the company’s growth potential with advancing technology 5. The CEO emphasized that Tesla’s value proposition extends beyond traditional automotive metrics.
Industry analysts suggest that a successful SpaceX public debut could create positive momentum for Tesla by demonstrating Musk’s ability to build and scale transformative technology companies across multiple sectors.
Conclusion
While Tesla faces immediate challenges including competitive pressure and margin concerns, the potential SpaceX IPO highlights the interconnected nature of Musk’s business empire. Investors appear willing to bet on the synergies between these ventures, even as Tesla’s core automotive fundamentals show mixed signals.
The coming weeks will test whether this “Elon fever” can sustain Tesla’s momentum through earnings season and beyond.
Not investment advice. For informational purposes only.
References
1“Tesla Stock Rises Amid Report Musk’s SpaceX Is Looking For Bankers”. Moomoo. Retrieved January 15, 2026.
2“Tesla stock wobbles. Elon Musk makes a surprise decision on FSD”. MSN. Retrieved January 15, 2026.
3“Tesla, Inc. (TSLA) Stock Price, News, Quote & History”. Yahoo Finance. Retrieved January 15, 2026.
4“Morgan Stanley leads banks vying for SpaceX IPO – report”. Seeking Alpha. Retrieved January 15, 2026.
5“Elon Musk Told Tesla Workers to ‘Hang On.’ The Stock Rose Today”. Investopedia. Retrieved January 15, 2026.
6“Tesla shares rise as Musk takes a back seat and Morgan Stanley”. City AM. Retrieved January 15, 2026.
7“Elon Fever Hits Wall Street: Tesla Soars as SpaceX IPO Hype Builds”. Yahoo Finance. Retrieved January 15, 2026.
8“Tesla’s stock is rising as Elon Musk buys more than 2.5M shares”. InformNNY. Retrieved January 15, 2026.