Elon Musk’s aerospace company SpaceX has begun holding meetings with banks outside of the U.S. as it works toward a potential IPO later this year, according to Bloomberg News. Notably, one group of banks came from Europe, while another included firms from other regions, with all of them looking to get in on what could be a historic public listing. These discussions focused on filling junior roles within the IPO’s banking lineup and took place before SpaceX announced that it would acquire Musk’s artificial intelligence firm, xAI.
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Despite that deal, the combined company is still expected to move forward with an IPO later this year. Interestingly, bankers were asked to explain why their regional presence would be valuable, especially since SpaceX had already interviewed major Wall Street firms. Indeed, those expected to lead the deal include Bank of America (BAC), Goldman Sachs (GS), JPMorgan Chase (JPM), and Morgan Stanley (MS), though final decisions have not yet been made.
However, the sheer size of the offering explains why SpaceX may need such a large group of banks. Even before including xAI, the IPO was expected to raise as much as $50 billion, which would make it the largest ever. SpaceX is also considering setting aside a meaningful portion of shares for retail investors, with Robinhood Markets (HOOD) competing for a key role. Meanwhile, Tesla (TSLA) shareholders have been pushing for priority access.
What Is the Prediction for TSLA Stock?
When it comes to Elon Musk’s companies, most of them are privately held. However, retail investors can invest in his most popular company, Tesla. Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 11 Buys, 12 Holds, and seven Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $393.51 per share implies 3% downside risk.
