As SpaceX prepares to launch on the Nasdaq under the ticker SPCX, its impending debut is casting a shadow over Tesla's stock, which is experiencing a notable dip in the days leading up to the event. SpaceX's monumental Initial Public Offering (IPO) on June 12, 2026, a launch that promises to be the largest in history, could significantly reshape the market landscape.

SpaceX is aiming to raise approximately $75 billion by offering shares at $135 each, targeting a staggering valuation of $1.77 trillion. This offering, more than three times the size of previous record-holding IPOs, includes a substantial allocation of up to 30% for retail investors, a move designed to broaden public participation.

Despite the excitement surrounding SpaceX's entry into the public market, analysts are expressing concerns about its valuation.

Morningstar, a respected independent research firm, assigned SpaceX a fair value of $780 billion, significantly lower than its IPO target, suggesting that investors may find more attractive entry points after the initial offering.

The company's financial structure, from its disclosures, reveals a profitable Starlink division subsidizing losses from its rocket launch and burgeoning AI ventures, with a reported net loss of $4.94 billion in 2025. Furthermore, Elon Musk retains over 82% of the voting power, raising governance concerns for minority shareholders.

The anticipation surrounding SpaceX's IPO coincided with a downturn in Tesla's stock performance. On June 8, 2026, Tesla shares experienced a slight rise of over 2%, reaching $398.85, attributed to news about an accelerated launch of its next-generation Roadster. However, by June 10, 2026, Tesla Inc. (TSLA) saw its stock move down by 3.43%, underperforming its sector. This decline occurred amidst broader market scrutiny of Tesla's elevated valuation multiples and significant capital expenditures planned for 2026. Analysts point to the company's projected negative free cash flow for the remainder of the year and recent declines in net income and vehicle deliveries in late 2025 as contributing factors to investor caution.

Adding to the complexity, Wall Street sentiment towards Tesla showed a divergence. While JPMorgan significantly raised its price target for Tesla to $475 from $145, shifting its rating to Neutral from Underweight and emphasizing the company's potential beyond EVs, other analysts maintained a more cautious stance.

Barclays, for instance, reiterated a Hold rating, citing slow progress in the robotaxi rollout. The market also faces uncertainty regarding Tesla's ambitious projects, such as its robotaxi service and Optimus humanoid robot, with prediction markets assigning low odds for their timely delivery.

The SpaceX IPO, with its unprecedented scale, introduces a new dynamic to the market. While the company's dominant position in commercial launch and the growth potential of Starlink fuel investor optimism, the substantial valuation and ongoing investments in AI present considerable risks. As SpaceX prepares to join the public markets, the performance of Tesla's stock will likely remain intertwined with broader market sentiment, analyst ratings, and the company's ability to deliver on its future growth promises, particularly in the realm of autonomous driving and robotics.