This article first appeared on GuruFocus.
Tesla (NASDAQ:TSLA) shares rose about 1% on Thursday morning after reports that SpaceX is interviewing banks about a possible initial public offering, a development investors say could affect sentiment around Elon Musk’s related businesses.
The move revived talk that a SpaceX listing could be one of the biggest ever, with reports suggesting the company may seek more than $25 billion and could tap banks including Morgan Stanley to lead the deal.
While SpaceX remains private and has made no official filing, traders said the prospect of an IPO tends to lift interest in Musk-linked assets, especially as markets hunt for growth stories tied to artificial intelligence and space infrastructure.
Tesla also faces a near-term catalyst: its fourth-quarter earnings report due later this month, which could prompt further share swings as investors weigh vehicle deliveries, margins and AI spending, and retail demand.
Market participants cautioned that any IPO process is likely to be long and dependent on market conditions; for now, the SpaceX reports add to the narrative shaping TSLA’s trading but do not yet change its fundamentals overall.