Wedbush Securities said anticipation of a possible SpaceX IPO may cause volatility in tech stocks.
The brokerage believes investors could temporarily rotate capital into the listing.
It also speculated about long-term convergence between Elon Musk’s companies.
SpaceX Could Take “Oxygen” from Tech Trade in Short Term, Says Report
Wedbush says SpaceX IPO expectations could trigger short-term tech volatility, flags possible investor rotation toward a new mega-cap listing and also raises long-term speculation around Musk’s companies
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Wedbush Securities, in a note ahead of a potential SpaceX initial public offering (IPO), said market anticipation around the listing could lead to short-term volatility, especially in technology stocks. The brokerage said investors are likely to react to what it called a “historical IPO” if the company moves forward with a public listing.
“We also believe the SpaceX anticipation has caused some added volatility in the market especially in the tech sector as traders/investors anticipate the ripple impact of this historical IPO,” Wedbush said in its note.
It added that SpaceX going public could be an important moment for the broader technology sector, particularly as artificial intelligence and data-driven businesses continue to shape market trends.
Tech Sector Impact and Market Rotation
The note said the potential listing could influence investor positioning across the technology and semiconductor space. Wedbush suggested that large inflows into a new mega-cap stock could temporarily divert money away from other high-growth tech names.
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“While there will be some worries that the mammoth SpaceX will take away some oxygen from the tech/semi trade as investors rotate into SpaceX, we believe this will be a short-term bump in the road as the market adjusts to this new tech titan as a public company,” the brokerage said.
The firm added that such rotation effects are usually temporary as markets adjust to new large listings. It also framed SpaceX as a key player in the evolving AI and space-driven technology ecosystem, with broader implications for investor sentiment in the sector.
Long-Term View on Musk’s Companies
Wedbush also laid out a more long-term and speculative view on Elon Musk’s companies, suggesting deeper integration across his business empire. It said there could be structural alignment between Tesla and SpaceX in the future.
“We still expect Tesla and SpaceX to merge in 2027 post-IPO… with the groundwork already in place for both operations to become one organization,” the note said, assigning a high probability to the scenario in its view.
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The brokerage added that such a move would reflect Musk’s broader push to build an integrated technology ecosystem spanning electric vehicles, space, and artificial intelligence. SpaceX, however, has not made any official announcement regarding IPO plans, timing, or structure.