Should Investors Sell Tesla Stock to Buy SpaceX?

For years, Tesla (NASDAQ: TSLA) offered investors thing unique: a nationalist marketplace mode to put alongside CEO Elon Musk's technological ambitions.

As the institution has evolved acold beyond an electrical conveyance (EV) maker, investors person gradually viewed Tesla arsenic a stake connected artificial quality (AI), self-driving cars, robotics, automation, and Musk's quality to physique industry-defining businesses. That cognition helped Tesla bid a premium valuation successful the market.

Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected the 1 little-known company, called an "Indispensable Monopoly" providing the captious exertion Nvidia and Intel some need. Continue »

But a imaginable SpaceX archetypal nationalist offering (IPO) could softly alteration however investors presumption Tesla stock. For the archetypal time, investors whitethorn person different large-scale Musk institution to comparison straight against Tesla.

And that examination could substance much than galore investors realize.

Tesla's valuation was ne'er conscionable astir cars

Tesla delivered astir 1.6 cardinal vehicles successful 2025, making it 1 of the world's largest EV manufacturers. But accepted automakers besides merchantability millions of vehicles. None commercialized astatine a valuation anyplace adjacent to Tesla's. For perspective, Tesla's banal has a price-to-sales (P/S) ratio of 15.6, acold up of General Motors' P/S ratio of 0.4.

That's due to the fact that investors ne'er valued Tesla similar a mean car company.

They gave Tesla recognition for businesses that stay mostly up of it, including robotaxis, autonomous driving, humanoid robots, AI-driven software, and vigor infrastructure. Investors efficaciously treated Tesla arsenic a exertion level with aggregate semipermanent maturation opportunities.

For years, Tesla besides benefited from a almighty advantage: scarcity. Investors who believed successful Musk's quality to physique transformative businesses had constricted nationalist marketplace ways to put alongside him. SpaceX, xAI, and Neuralink each remained private. So, Tesla became the default option.

But a SpaceX IPO could statesman changing that dynamic.

SpaceX could reshape Tesla's valuation model

At archetypal glance, immoderate investors whitethorn presume a SpaceX IPO matters simply due to the fact that wealth could rotate retired of Tesla stock. That whitethorn hap astir the margins. But the bigger displacement could impact capitalist psychology.

A nationalist SpaceX listing would springiness investors different large Musk-led institution to measure directly. And dissimilar Tesla, SpaceX could participate nationalist markets with what galore investors whitethorn presumption arsenic a fresher maturation story.