Tesla’s ‘Musk Premium’ in Focus With SpaceX IPO in View

Core Viewpoint - Tesla Inc. is positioned as a leader in the electric vehicle market, with a strong focus on future technologies like driverless cars and artificial intelligence, but its stock valuation has reached extremely high levels, raising concerns among investors [1][3]. Stock Performance - Tesla's shares increased by 3.5% on Thursday and have gained over 20% in the last four weeks, reaching a record high for the year [2]. - Since a low on April 8, the stock has surged nearly 120%, making it one of the top 20 performers in the S&P 500 Index [2]. Valuation Concerns - The stock is currently valued at approximately 220 times earnings for the next 12 months, making it the second highest valuation in the S&P 500, only behind Warner Bros Discovery Inc. [3]. - Analysts express skepticism about the sustainability of this valuation, with some stating it does not make sense given the current struggles of Tesla's core auto business [4]. Investor Sentiment and Future Prospects - There is a belief that a potential IPO for SpaceX could create selling pressure on Tesla shares, as some investors are more interested in Musk's broader vision than in Tesla as a car manufacturer [5]. - Conversely, a successful SpaceX IPO could enhance Musk's profile and potentially boost Tesla's stock by attracting new investors drawn to his innovation narrative [6]. - Historical trends suggest that milestones achieved by Musk's companies often positively influence sentiment across his other ventures, including Tesla [6].