The upcoming SpaceX IPO, which is scheduled to kick off on Friday, June 12, could result in Tesla Inc. (NASDAQ:TSLA) investors exiting their positions in the EV giant, according to investor Gary Black of The Future Fund LLC.

Investors To ‘Lighten’ TSLA Positions?

In a post on X on Wednesday, Black outlined that several retail investors participating in the SpaceX IPO “will lighten up on their TSLA positions to fund their SPCX shares.”

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He added that lead underwriters for the IPO, Goldman Sachs Group Inc. (NYSE:GS) and Morgan Stanley (NYSE:MS), will “engineer a Day 1 pop for SPCX IPO investors,” citing “huge potential paydays” from upcoming IPOs of artificial intelligence companies Anthropic and OpenAI.

However, the investor said that the stock was still “richly priced” and that he would avoid participating in the IPO until the stock comes “back to earth post-IPO.”