Everyone’s Turning Bearish on Tesla Ahead of SpaceX IPO. Be a Contrarian and Buy TSLA Stock Instead.

SpaceX has reportedly hired Goldman Sachs for the lead left position on its IPO prospectus. The eventual listing is expected to make Elon Musk the world’s first trillionaire, but markets have been jittery about Tesla (TSLA) stock ahead of the IPO, as there are fears that many investors, who hitherto had only Tesla as a publicly traded play on Musk, would ditch the stock to buy SpaceX instead.

Joe Gilbert, portfolio manager at Integrity Asset Management, said that the eventual SpaceX IPO “cannot be a positive for Tesla.” While he acknowledged that, in the past, Musk has balanced his commitments across his different companies, he believes that “it feels like SpaceX is his new baby at the expense of Tesla.”