A planned SpaceX IPO in June is expected to increase the number of Musk’s publicly traded companies, adding investor attention to automation and space exploration. Some investors and analysts see risks for Tesla stock, arguing Musk’s focus may shift toward SpaceX. Tesla has faced a difficult period, including its first full-year revenue decline, deliveries below expectations, and production exceeding sales. Tesla’s valuation is described as trading above what fundamentals indicate. Musk has framed Tesla as an AI and robotics company, including a projection that most value will come from the humanoid Optimus robot, despite limited evidence of scaling. SpaceX is presented as having stronger traction through Starlink subscriber growth and reusable rockets dominating orbital launches, with IPO materials projecting $18.7 billion revenue in 2025.
"“This cannot be a positive for Tesla,” Joe Gilbert, portfolio manager at Integrity Asset Management, told Bloomberg. “We believe that Musk's focus will predominantly be lasered on SpaceX. Musk has proved to be able to balance multiple initiatives simultaneously in the past, but it feels like SpaceX is his new baby at the expense of Tesla.”"
"Tesla has had a difficult year: It saw the company's first full-year revenue decline in its history last year, and despite improved sales in the first three months of this year, deliveries have fallen below analysts' expectations, and production has continued to outpace sales. Though its stock is down about 5% year-to-date, Tesla's stock trades well above what its fundamental performance reflects, according to analysts."
"Musk has recently touted Tesla as less of an electric vehicle producer and more of an AI and robotics company, exemplified by his projection that 80% of the company's total value will be represented in its humanoid Optimus robot, despite no evidence of the project's scaling, let alone to Musk's goal of an annual capacity of 1 million robots."
"SpaceX tells a different story. Among the stakeholders in conversations about putting data centers in space to scale the growth of AI, SpaceX has already shown promise of strong returns with Starlink, its satellite internet with more than 10 million subscribers, as well as its grip on the global orbital launch market, using reusable rocket boosters. The company's IPO prospectus reveals a full-year revenue of $18.7 billion in 2025, a 33% year-over-yea"
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