Tesla rises 3% on SpaceX IPO buzz, China sales, JPMorgan upgrade

Tesla shares rose about 3% to $403.65 in early trading Monday as investors weighed expected SpaceX IPO pricing, stronger retail sales in China for May and a JPMorgan upgrade. U.S. indexes were higher: the S&P 500 gained 0.7%, the Nasdaq rose 1.2% and the Dow Jones Industrial Average climbed about 159 points. The gains followed a 6.6% drop for Tesla on Friday and a 4.2% fall for the Nasdaq after a stronger-than-expected U.S. jobs report that raised concerns about sustained higher interest rates.

SpaceX, led by Elon Musk, is scheduled to set the price for its initial public offering on Thursday. Tesla and SpaceX have collaborated on artificial-intelligence applications and semiconductor manufacturing. Prediction markets assign odds to a potential combination: Kalshi implies about a 50% chance of a deal before May 2027, while Polymarket implies roughly a 43% chance before the end of 2026.

China Passenger Car Association data released Monday showed Tesla retail sales of 47,281 vehicles in May, a 22.5% year-over-year increase and an 82.2% rise from April’s 25,956 units. The May total was below March’s 56,107 units and about 24% higher than February’s 38,206. The May figure ended two months of year-over-year declines.

JPMorgan upgraded Tesla to Neutral from Underweight on Friday, ending a bearish stance the bank had held since July 2023. Analyst Rajat Gupta cited Tesla’s vertically integrated supply chain and expanding artificial-intelligence capabilities. In a client note Gupta wrote that using cell and vehicle production sites as test beds for the Optimus humanoid program could lower costs for the automotive business and provide industrial-scale validation for robotics efforts.

Market participants cited SpaceX headlines, the China sales figures and the JPMorgan upgrade as factors behind Monday’s gain. Traders and investors continue to monitor employment and interest-rate data, which have influenced recent movements in technology stocks.

Investors are watching Thursday’s SpaceX IPO pricing, upcoming monthly sales reports from China and further analyst coverage for near-term signals about Tesla and related ventures.