Tesla Shares Rise to $422 on SpaceX IPO Filing and Merger Talk

Tesla shares climbed about 2% in premarket trading to $422 after SpaceX filed for an IPO that could value it above $2 trillion and revived merger speculation. The rebound follows a sharp drop below $400 on May 19 triggered by Model Y price hikes and softening demand signals. Earlier in the period Tesla committed $250 million to expand Berlin battery capacity to 18 GWh, launched a 0.92% financing plan in China after April sales fell 9% YoY, and posted urgent FSD engineering roles to speed China rollout. Lithuania’s approval of supervised FSD on May 20 had already lifted the stock back above $400. Investors are now weighing Tesla’s $25 billion 2026 AI and robotics capex against potential capital diversion from a SpaceX listing.