Tesla stock traded higher in premarket trading Tuesday, starting the holiday-shortened week in the green, with investor attention still on Elon Musk's other trillion-dollar company.
Shares of the electric-vehicle maker were up 1% at $430.30, while S&P 500 and Dow Jones Industrial Average futures were up 0.7% and 0.5%, respectively.
Stock futures rose after President Donald Trump said Monday that negotiations with Iran were " proceeding nicely!" Benchmark international oil prices, however, rose 2.8% in early trading at roughly $96 per barrel after the U.S. struck targets in Southern Iran on Monday evening.
Wall Street has been relatively quiet on Tesla lately, preferring to focus on the coming initial public offering of SpaceX. Elon Musk's rocket company is on the cusp of a record-setting IPO that could value SpaceX at $2 trillion.
SpaceX's IPO registration statement was made public last week. Tesla and SpaceX have grown close. Tesla holds 19 million shares of SpaceX, and SpaceX has purchased services from Tesla. The pair also collaborating on a semiconductor fab and digital artificial-intelligence assistant.
That has fueled speculation about Tesla and SpaceX merging one day. Even if it happens, SpaceX will surely finish its IPO. The massive IPO is also raising concerns that Tesla investors will sell Tesla stock to buy SpaceX, creating a headwind for Tesla.
It's a risk, but how things will turn out is hard to say. Investors will have to wait to see how both businesses develop.
Coming into Tuesday, Tesla stock has fallen about 5% this year but has risen about 26% over the past 12 months.
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