Tesla Shares Decline as Tech Stocks Sell Off and SpaceX Merger Speculation Grows

Tesla, Inc. (TSLA) shares dropped 1.43% on Thursday to $361.90, marking a fourth consecutive daily decline. The stock has fallen roughly 18% this year as a wider pullback in technology equities and speculation surrounding a potential combination with SpaceX impacted trading.

Investor attention has increasingly shifted to rumors that Tesla could merge with SpaceX in an all-stock deal, with SpaceX potentially acting as the acquirer. Barclays analyst Dan Levy suggested an announcement could occur before Tesla's annual meeting on December 6. Under current valuations, SpaceX is valued at roughly $2.1 trillion compared to Tesla's $1.5 trillion valuation, giving Chief Executive Elon Musk an estimated 37% ownership stake and 57% voting control in the merged entity. At the same time, broader tech sector weakness, driven by rising borrowing costs and doubts over returns on artificial intelligence investments, has added persistent selling pressure.

Market participants are also evaluating the unveiling of Tesla's long-delayed Roadster sports car at a SpaceX facility in Texas. While a demonstration showing flying features may generate consumer interest, analysts note the niche vehicle is unlikely to noticeably shift the company's broader financial trajectory. Investors will be monitoring whether upcoming product events can restore longer-term confidence amid persistent macroeconomic headwinds.