Billionaire Elon Musk’s SpaceX has reportedly filed for an IPO, which could become one of the largest public offerings ever. The company is targeting a valuation of more than $1.75 trillion, raising up to $75 billion. Interestingly, the SpaceX IPO isn’t just a space story—it’s a Tesla (TSLA) story too, and investors are watching closely. Any major move from SpaceX could influence Tesla’s stock performance, investor sentiment, and the broader EV and tech markets. Let’s dig deeper.

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For context, Bloomberg yesterday reported that SpaceX submitted its draft registration to the U.S. Securities and Exchange Commission (SEC). If all goes according to plan, the IPO could happen as early as June 2026 and potentially become one of the largest listings in history.

Tesla has already received government approval to convert its investment in Musk’s xAI into a small stake in SpaceX, linking Musk’s two biggest companies financially ahead of the IPO. This means Tesla shareholders already have indirect exposure to SpaceX’s growth, which could become even more valuable once the IPO happens. SpaceX is also planning to allocate up to 30% of shares to retail investors — triple the typical IPO norm. This means Tesla’s loyal retail investor base could have direct access from day one.

Meanwhile, Tesla’s existing stake in SpaceX will be valued publicly for the first time once the IPO happens. Until now, it has been a hidden asset with no clear market value—but after the IPO, its value will be reflected in Tesla’s worth.

Looking further ahead, the picture gets even bigger. Wedbush’s five-star-rated analyst, Dan Ives, predicts a potential Tesla-SpaceX merger as early as 2027. He called the combination the “holy grail” that could connect both disruptive tech companies under one AI-driven ecosystem.

Having said that, Tesla investors could also face some risks ahead of the SpaceX IPO. The listing could shift investor attention and capital, leading to short-term swings in TSLA stock. If SpaceX commands a high valuation, retail enthusiasm may tilt toward it, reducing buying interest in Tesla, adding downside pressure.

At the same time, any delays or complications in the IPO could create further uncertainty for both companies.

According to TipRanks, TSLA stock has received a Hold consensus rating, with 13 Buys, 11 Holds, and seven Sells assigned in the last three months. The average price target for Tesla shares is $395.31, suggesting a potential upside of 3.69% from the current level.

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