Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: “If reports are true, SpaceX could go public next year at a jaw-dropping valuation of around $1.5 trillion.
“That would make it one of the biggest IPOs in history and a monumental moment for markets, fans of Elon Musk, and anyone who’s been watching the next generation of the space race unfold.
“But here’s the twist: 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.
“A SpaceX IPO changes that dynamic. Suddenly, investors have another way to back Musk.
“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.”
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