Elon Musk, founder and CEO of Tesla and SpaceX
SpaceX’s debut on the stock exchange could be a more attractive alternative with greater growth potential for investors.
A eventual SpaceX stock market entry could turn into a unexpected problem for Tesla and for its shareholders.
The thesis is defended by specialist Andreas Neuhaus, in the German economic newspaper: he considers that an initial public offering (IPO) of Elon Musk’s space company could attract investors currently focused on the electric car manufacturer.
Almost 2 months ago, SpaceX filed an IPO with the United States Securities and Exchange Commission. An initial public offering is the time when a private company sells shares to the general public on a stock exchange. In other words, the rocket, satellite and artificial intelligence company is on its way to listing on the US stock exchange.
Tesla once again approached historic highs on the stock market, after appreciating around 30% since the beginning of April. Despite this recovery, expectations are growing around the future of SpaceX, whose possible debut in the financial markets could offer investors a alternative considered more attractive and with greater growth potential.
Many Tesla shareholders do not only invest in the automaker’s current performance, but above all in future vision promoted by Elon Musk. Over the past few years, Musk has fueled expectations around areas such as autonomous driving, robotaxis and artificial intelligence, thus justifying share valuations much higher than those of other car manufacturers.
Not so much, SpaceX may represent a proposal more in line with the futuristic image associated with the South African businessman. The company currently dominates the private space launch market and has been expanding its satellite network Starlink, considered one of its most promising business areas.
For many investors, the space company could offer a more innovative technological profile and less dependent on the growing competition affecting the electric automobile sector.
A SpaceX IPO could trigger a redistribution of capital between companies linked to the Musk universe. Investors who currently maintain positions in Tesla because they believe in the entrepreneur could choose transfer part of this capital for SpaceX, if it becomes accessible on the stock exchange.
At the same time, the Tesla faces important challenges. Chinese competition has intensified, profit margins have shrunk and sales growth no longer shows the explosive pace of previous years. While the company continues to benefit from a strong investor base and Musk’s notoriety, some analysts question whether the current share price remains sustainable without new sources of growth.
SpaceX consultants estimate that the company could sell $75 billion in shares (64.7 billion euros). This value would be the highest ever.
