Tesla Stock Surges: SpaceX IPO and Analyst Moves Shake the Market

(SeaPRwire) –   By: Christian Pierce

Tesla’s stock had a wild week. After dropping nearly 10% in the five trading sessions leading to Thursday, it bounced back with a 4.6% jump to $399.15 on Thursday as SpaceX’s IPO order book closed. This has investors speculating if the selling pressure tied to the capital raise has eased.

SpaceX’s IPO raised around $75 billion, with about 30% going to retail investors, much more than usual. But the direct impact on Tesla might be small, as the retail portion is only about 2% of Tesla’s total market cap. Also, not all the cash came from selling Tesla stocks. The broader market, with the Nasdaq down about 6% the same week, also influenced Tesla’s price movement, given its beta of 1.80.

Analysts’ views on Tesla have shifted. JPMorgan upgraded it from underweight to neutral and almost tripled its price target from $145 to $475 on June 5th. Evercore also upgraded it to outperform. However, Truist dropped its target, and Jefferies and Oppenheimer maintained neutral ratings. The consensus of 44 analysts is a Hold, with an average target of $404.37.

Institutional activity shows Nuveen trimming its Tesla position by 2.6% in Q4, but it’s still the 9th largest holding. Vanguard added units, Norges Bank opened a new position, and Capital World lifted its stake in Q3. Overall, institutions hold 66.2% of the company. Insiders like Director Kathleen Wilson-Thompson and CFO Vaibhav Taneja also made stock sales. Tesla’s last earnings report had slightly above-consensus EPS but slightly missed revenue estimates.

Author bio: Christian Pierce, chief financial columnist and markets commentator.