Tesla Stock Rises Overnight: Elon Musk Eyes $10 Trillion Net Worth As Massive SpaceX IPO Sparks Tech Sell Rush

• Investor focus has shifted to the upcoming SpaceX IPO, which could value the company at around $1.5 trillion.
• Fund managers are reportedly weighing selling large-cap tech stocks, including Tesla, to raise cash for SpaceX allocations.
• SpaceX posted a net loss of about $4.9 billion last year.

Shares of Tesla Inc. (TSLA) rose about 1% in overnight trading heading into Monday after CEO Elon Musk targeted a $10 trillion wealth ambition even as investors rotate out of big tech stocks ahead of a massive SpaceX IPO.

TSLA stock ended over 2% higher on Friday. Shares snapped three straight weeks of gains to end the latest week up nearly 3%. 

Musk Eyes $10 Trillion Net Worth

Musk posted “$10T or bust” on X in response to Peter H. Diamandis, founder of the XPrize Foundation, who claimed that Musk had “just crossed $800 billion — roughly 2.7% of the entire US GDP.” Diamandis also added, “The last person to hold that much of the American economy? John D. Rockefeller in 1913. It took a century for anyone to match him. Rockefeller had oil. Musk has the future.” 

The comments come as Tesla continues to push beyond EVs into AI, autonomous driving, robotaxis, and humanoid robotics. Meanwhile, the comparison to John D. Rockefeller underscores the magnitude of Musk’s fortune. Rockefeller, founder of Standard Oil, built his wealth on major dominance of the oil industry during the Industrial Revolution. By the time of his death in 1937, his net worth stood at $1.4 billion, representing 1.5% of the U.S. GDP.

SpaceX IPO Buzz Sparks Tech Sell Plans

The SpaceX listing, which is still more than a month away, could value the aerospace firm at around $1.5 trillion, placing it among the most valuable companies globally at debut. Investor appetite has been strong, with nearly 200 institutional investors from major Wall Street funds recently flying to Texas for a presentation and demand exceeding available capacity on the trip, according to a report by The Information.

Fund managers are now reportedly actively setting aside SpaceX allocations, debating how much exposure to take, and how to fund those stakes. Many are also allegedly considering trimming stakes in large-cap tech stocks, including Tesla, to raise cash.

“Many of the Tesla investors want to own SpaceX, and they’re going to sell their Tesla stock or some of their Tesla stock to buy SpaceX,” Ross Gerber, CEO of Gerber Kawasaki Wealth & Investment Management, told The Information last month.

The IPO is expected to trigger a snowball of portfolio decisions across mutual funds, including how much capital to allocate, what assets to sell, and how to rebalance portfolios after the listing. Several “Magnificent 7” stocks including Apple, Microsoft, Nvidia, and Tesla are reportedly the most likely funding source due to their liquidity and heavy weighting in portfolios.

Some managers are also supposedly weighing selling stakes in aerospace and defense companies, while others may use tax-loss harvesting strategies, particularly in stocks that have recently declined. However, Goldman Sachs cautioned that large IPOs do not always impact broader market performance, even as funds increase cash allocations ahead of such events.

SpaceX Growth Comes With Heavy Losses

Despite strong demand, SpaceX’s financial profile contrasts with that of the cash-generating tech giants it may displace in Wall Street portfolios. The company recorded a net loss of about $4.9 billion last year as it continues to invest heavily in advanced rocket systems and space infrastructure.

Meanwhile, a recent Tesla filing showed that the EV maker generated over $570 million in revenue last year from transactions with Musk-linked entities, including SpaceX and xAI. Of that, $430.1 million came from xAI, mainly for Megapack deployments, while SpaceX contributed $143.3 million, mostly through vehicle purchases.

The growing ties have expanded after the merger of SpaceX and xAI, bringing AI infrastructure, satellites and launch systems under one umbrella. Tesla has integrated xAI’s Grok chatbot into its vehicles and continues to supply energy systems for data center operations.

Tesla had also previously agreed to invest $2 billion in xAI Holdings, which was later converted into equity in SpaceX following the merger. TSLA shares, which have already declined this year amid concerns over EV demand, could face additional pressure if investors sell to fund SpaceX allocations.

How Do Retail Traders Feel About TSLA And SPACEX?

On Stocktwits, retail sentiment for TSLA stock was ‘extremely bullish’ with ‘low’ message volume, while sentiment for SpaceX remained ‘bearish’ with ‘extremely low’ chatter. 

One user questioned, “For real tho, why doesn't Musk just pay for his own Tesla infrastructure? No more regulatory hurdles or whatever these ppl wanna call the delays.”

Another user expects “$400 open [for TSLA] tomorrow. Then $420 by end of the week.”

So far this year, TSLA stock has lagged its “Magnificent Seven” peers, making it the group’s second-worst performer, with a 13% decline.  

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