Tesla Falls 4% as SpaceX IPO Nears, Retail Investors Rotate Out of TSLA

According to analyst Gary Black, shares of Tesla (TSLA) fell 4% to $381.59 on Wednesday as SpaceX's blockbuster IPO, which has attracted over $250 billion in demand, reportedly spurred retail traders to sell Tesla positions to fund SpaceX purchases. The SpaceX offering at $135 per share seeks to raise $75 billion, valuing the company at approximately $1.8 trillion. Black said the subscription is 4 times oversubscribed and expects a strong opening-day rally Friday, though he cautioned that SpaceX is "richly priced" at 300x estimated 2025 EBITDA and advised waiting for shares to "come back to earth" post-debut.
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