Tesla Shares Soar Amid Rumors of SpaceX Partnership

Tesla Inc. shares have experienced a significant boost in extended trading on Thursday, driven by reports of a potential partnership between SpaceX and the electric vehicle manufacturer.

Key Factors Contributing to TSLA’s Upward Movement

  • Reports of a potential merger between SpaceX, Tesla, and xAI, all owned by Elon Musk, have sparked investor interest
  • Discussions between SpaceX and Tesla have been ongoing, with some investors expressing enthusiasm for the idea
  • A potential deal could reinforce Elon Musk’s plans for a public debut this year, aiming to raise capital for orbital data centers

Musk-Led Companies Consider Joining Forces

SpaceX is reportedly considering a merger with Tesla and xAI, according to sources familiar with the matter. This move could be a strategic step towards SpaceX’s planned initial public offering (IPO) later this year. With a potential valuation of around $1.5 trillion, the IPO is expected to take place in June.

TSLA Stock Experience a Boost

  • TSLA shares were up 3.11% in after-hours trading, reaching $429.51
  • The stock is currently trading 2.3% below its 20-day simple moving average (SMA) and 1.3% below its 100-day SMA, indicating short-term weakness
  • However, shares have increased by 7.06% over the past 12 months, reflecting a generally positive long-term trend

Technical Indicators

  • The Relative Strength Index (RSI) is at 43.93, considered neutral territory
  • The Moving Average Convergence Divergence (MACD) is below its signal line
  • Key resistance is at $499, while key support can be found at $424.50

As the situation continues to unfold, investors will be closely watching the developments between SpaceX, Tesla, and xAI, and their potential impact on the stock market.