SpaceX (SPACE) is creating some buzz in the Elon Musk universe amid reports that its valuation is soaring and that the company is on the path to an IPO in 2026. The aerospace company is said to be moving ahead with a mid-to-late 2026 IPO of up to $30 billion at a current valuation of $1.5 trillion that would make it the biggest public offering in history.
Hargreaves Lansdown equity analyst Matt Britzman noted that the SpaceX (SPACE) IPO would be a monumental moment for markets, fans of Elon Musk, and anyone who’s been watching the next generation of the space race unfold. However, Britzman warned of a potential twist for shareholders of Tesla (TSLA).
“While this is exciting news for Musk enthusiasts and space fans, Tesla shareholders might not be cheering quite as loudly once the dust settles. For years, Tesla has largely been the only way for public market investors to gain exposure to Elon Musk. That exclusivity has been a big part of Tesla’s story – and its valuation. The so-called ‘Elon premium’ has helped Tesla consistently trade at levels far beyond its fundamentals,” postulated Britzman.
The theory is that a SpaceX (SPACE) IPO changes the Elon Musk-Tesla premium dynamic. “The main concern would be if retail and institutional investors who invested in Tesla for exposure to Musk decided to spread their bets across the two companies. If so, that could take some shine off Tesla’s valuation,” he wrote.
Shares of Tesla (TSLA) are up more than 10% on a year-to-date basis but trail the return of the S&P 500 Index.