Tesla stock slides as investors turn to Musk’s crown jewel SpaceX

Investing.com -- Tesla Inc (NASDAQ: TSLA) shares fell about 2% on Friday as investor attention moved to the market debut of SpaceX.

Elon Musk's aerospace and defense company has reached a valuation above $2 trillion, surpassing Tesla's market capitalization of approximately $1.2 trillion as of early Friday.

SpaceX stated in an amended IPO filing that it may issue "significant equity" to fund future transactions. The disclosure led to renewed speculation about a potential merger between SpaceX and Tesla.

Tesla holds a stake in SpaceX after investing $2 billion in xAI before SpaceX acquired it, making the automaker a shareholder in the aerospace company through those shares.

Tesla shares has declined this month alongside other megacap technology stocks as investors moved capital away from the sector. The group known as the "Magnificent Seven" lost more than $2 trillion in combined market value so far this month.

Market participants redirected funds from technology companies toward cyclical and defensive sectors during the period. Strategists indicated that some investors may have sold positions to prepare capital for an upcoming initial public offering.

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