SpaceX IPO is worrying some of the biggest Tesla shareholders; says analyst Joe Gilbert: This cannot be a positive for Tesla because ...

Elon Musk's SpaceX is reportedly moving closer to an initial public offering. However, some of the biggest Tesla investors and analysts believe the listing could create new challenges for the electric vehicle maker. Concerns center on whether Musk’s attention may increasingly shift toward SpaceX and whether investors seeking exposure to his AI and innovation ambitions could move away from Tesla.In an interview with Bloomberg, Joe Gilbert, portfolio manager at Integrity Asset Management, said, “This cannot be a positive for Tesla. We believe that Musk’s focus will predominantly be lasered on SpaceX. Musk has proved to be able to balance multiple initiatives simultaneously in the past, but it feels like SpaceX is his new baby at the expense of Tesla.”This follows Tesla's efforts to cope with slowing growth rates as it sees its revenues fall for the first time in history, while its vehicles have also failed to meet market expectations for the number of units delivered. Meanwhile, estimates suggest SpaceX could be valued at $1.75 trillion after going public.Analysts say one concern is that SpaceX’s public debut may offer investors a more direct way to back Musk’s ambitions around AI, automation and advanced technology. According to Dave Mazza, CEO of Roundhill Investments, SpaceX’s reported plan to allocate around 30% of IPO shares to retail investors could draw interest from the same group that has historically supported Tesla stock.“Tesla’s valuation has never been justified by vehicles alone, and investors are paying for the autonomy and physical AI thesis. SpaceX’s IPO sharpens that scrutiny, because investors will now have a cleaner, purer Musk innovation bet to benchmark against, which raises the bar for Tesla to actually deliver,” Mazza told Fortune.Tesla’s valuation has increasingly been tied to future projects, such as autonomous driving and the Optimus humanoid robot, rather than its vehicle business.Some investors see another possibility: closer integration between Musk’s companies. Tesla Bull Ross Gerber suggested speculation around a merger between Tesla and SpaceX may increase following the IPO.SpaceX is already connected to Musk’s broader universe, both through its stake in xAI and its semiconductor collaborations. Gerber explained that integrating companies would simplify Musk's investment decisions and ease the burden on Tesla should other companies succeed.“This period of time could be very difficult for Tesla, on top of the fact that now you’re throwing out SpaceX. In a typical Elon fashion, there’s lots of messiness with all this, and how that all gets reconciled is through a merger,” Gerber said. However, Mazza said concerns around Musk dividing his time are not new and have existed across multiple ventures.“That concern is already priced in, as Musk’s divided attention has been a headline risk for years. The more relevant question is execution: Tesla needs to deliver on robotaxi and autonomy on its own timeline, and SpaceX going public doesn’t change that calculus one way or the other,” he added.