Countdown to SpaceX going public, Tesla, Inc. (TSLA.US) "Musk premium" facing redistribution.

Elon Musk is painting a future for investors that includes self-driving cars, humanoid Siasun Robot&Automation assistants, and even living on Mars. The only way to bet on his vision at the moment is by buying shares of Tesla, Inc. (TSLA.US). The electric car manufacturer's stock hit a new high this past Tuesday, rising approximately 20% over the last four weeks. Since hitting a low point on April 8th due to panic caused by the Trump administration's tariff policies, the stock has surged 111%, making it one of the top 20 performing stocks in the S&P 500. The rise in stock price demonstrates Wall Street's confidence in Musk's artificial intelligence ambitions, especially as Tesla, Inc. faces challenges in its core automotive business. However, this has also driven up Tesla, Inc.'s valuation. Currently, Tesla, Inc. has a price-to-earnings ratio of 214 (based on expected earnings for the next 12 months), ranking it second among S&P 500 index components, second only to Warner Brothers Discovery Inc. (WBD.US), and far higher than the third-ranked Palantir Technologies (PLTR.US) with a 178 times price-to-earnings ratio. Vikram Rai, portfolio manager and macro trader at First New York, said, "This valuation makes no sense." Earlier this year, First New York sold its holdings of Tesla, Inc. stock after Musk publicly broke ties with Trump on social media. With Musk's space company SpaceX potentially going public next year, traders seeking to "invest in Musk stocks" may soon have a new avenue. The space exploration company plans to conduct an internal stock sale, with a valuation estimated to reach $80 billion, making it the world's highest-valued unlisted company. Its initial public offering (IPO) is expected to be the largest IPO in history. Dmitry Shlyapnikov, analyst at Horizon Investments, stated, "SpaceX's IPO could bring some selling pressure to Tesla, Inc. stock. Some investors hold Tesla, Inc. stock to invest in Elon Musk's ideas, not necessarily in the company itself." However, others believe that SpaceX's IPO will shift focus to Musk, bringing new momentum for Tesla, Inc. Adam Sarhan, CEO of 50 Park Investments, said, "Historically, when a company under Musk's umbrella achieves major milestones, it often boosts market sentiment for other companies. SpaceX's high-profile IPO may attract a new wave of investors who are drawn to Musk's innovation storyand this enthusiasm often spreads to Tesla, Inc." Analysis suggests that Tesla, Inc.'s stock price is currently benefiting from the hype surrounding SpaceX, with the two companies' missions interrelated. This paints a future where Tesla, Inc.'s Optimus Siasun Robot&Automation will help Musk achieve his grand goals of colonizing Mars, while SpaceX's Starlink satellite system will enhance vehicle connectivity on Earth. The valuations of both companies are also quite high. However, critics of Tesla, Inc. question whether the company's fundamentals can support these valuations. Tesla, Inc.'s car sales are slowing down, profits are declining, and with increased regulations, consumer spending on cars is decreasing. Thomas Thornton, founder of hedge fund Telemetry, said, "If you've held Tesla, Inc. stock for the long term, you've definitely made money, no doubt about it, it's just odd to me because Tesla, Inc.'s fundamentals are really bad." He holds a small short position on Tesla, Inc. On the other hand, optimists believe Tesla, Inc. has significant growth potential in the autonomous driving and self-driving taxi sectors. Musk's goal is to transform Tesla, Inc. from a car manufacturer into an artificial intelligence and Siasun Robot&Automation company. In an article published on X platform in September, he wrote that 80% of the company's profits will eventually come from Siasun Robot&Automation. Brian Mulberry, portfolio manager at Zacks Investment Management, said, "We believe that based on Tesla, Inc.'s innovation in the automation field, the company's profits will grow at a rate of 30% to 35% over the next two to three years." If Musk succeeds in this, Tesla, Inc.'s market value will become more reasonable. If not, SpaceX will come into play. Publicly traded SpaceX stock will give investors the opportunity to own a part of Musk's vision, without bearing the burden of Tesla, Inc. Rai said, "I think most investors are not willing to further double down on Elon Musk, that's too risky." However, Needham analyst Chris Pierce disagrees. He said, "We believe investors will not make an either-or choice between Tesla, Inc. and Musk, but will support both companies simultaneously. Investors who profit from Tesla, Inc. are likely to want to support Musk's other endeavors as well." At present, for investors, Tesla, Inc. is the only way to bet on Musk's vision. The current risk lies in its stock price valuation, which is now approaching dangerous territory. From a technical perspective, earlier this week, Tesla, Inc.'s stock price approached overbought territory. The last time the stock price touched this area was in early October, followed by a 10% decline over seven consecutive trading days. Mulberry said, "In the short term, after hitting historic highs, it may need some time to cool off." For those who are long-term believers in Musk, valuation, as Mulberry stated, is only a short-term issue. However, in the coming years, many believe that regardless of the price, Tesla, Inc. and even possibly SpaceX, will Beijing Zhidemai Technology. Mulberry, 51, said, "I fully believe that at some point in the future there will be a commercial Mars exploration mission, but I may not live to see it. But does that mean I should invest in related stocks now? That requires a very long-term perspective, and the impact of Siasun Robot&Automation taxis and Siasun Robot&Automation technology may be realized in the next three to five years."