After SpaceX IPO Hype Settles, Is Tesla Stock a Legitimate Buy Right Now?

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(SeaPRwire) –

By: Christian Pierce
Tesla stock climbed 1.7% to $381.59 early Thursday. That came as SpaceX’s IPO order book closed, ending a rough week for the EV maker. TSLA Stock Card TSLA had dropped nearly 10% over seven trading days. Many investors feared retail holders would sell Tesla shares to fund SpaceX purchases.

SpaceX’s $75 billion IPO is one of the largest on record. It allocated roughly 30% to retail investors, far more than typical IPOs. The Nasdaq Composite fell 6% over the same week, a bigger driver of Tesla’s slide. Tesla has a beta of 1.80, so it swings harder than the broader market. Its 52-week range sits between $288.77 and $498.83, with a 50-day moving average of $397.29. Institutional investors hold 66.2% of Tesla’s float. Dorsey & Whitney Trust CO LLC raised its position by 8.8% in the fourth quarter. Analyst ratings are mixed: 22 buys, 16 holds, 5 sells, with a consensus target of $404.37. Recent quarterly results beat EPS estimates of $0.39 with $0.41, but revenue missed slightly at $22.39 billion. China retail deliveries rose 22.5% year-over-year in May. Belgium approved Full Self-Driving software use last month. Two insiders sold shares in recent months: the CFO sold 3,000 shares on May 13, and a director sold 26,409 shares on April 30.

The initial panic over SpaceX’s retail allocation was overblown. The retail portion of the IPO equals just 2% of Tesla’s market cap. Not all funding for SpaceX shares would come from Tesla holders. The stock’s recent volatility reflected jitters tied to both the IPO and broader market shifts. For long-term investors, the current price sits below the consensus target, with solid near-term demand catalysts.

Author bio: Christian Pierce, chief financial columnist and markets commentator focused on tech sector equities and institutional investment trends.