Stock Market Update

[BRIEFING.COM] The major averages remain firmly lower, little changed from previous levels. 

Tesla (TSLA 436.88, +20.32, +4.88%) is now the only "magnificent seven" stock that trades higher, rebounding from a post-earnings selloff following a Bloomberg report that Elon Musk's SpaceX is considering a merger with the EV giant or xAI as an alternative to a traditional IPO.

This strategic pivot comes as SpaceX was reportedly targeting a mid-June public debut at a valuation of up to $1.5 trillion, which would have marked the largest IPO in history. Investors are cheering the potential combination because it would fundamentally transform TSLA from an automotive-centric company into a diversified "everything" conglomerate, encompassing aerospace, global telecommunications via Starlink, and cutting-edge artificial intelligence.

However, such a colossal union is not without significant risks, including intense regulatory scrutiny from the SEC and FTC, potential conflicts of interest regarding capital allocation across diverse industries, and the "Musk-related" volatility that could follow if Starship or FSD milestones face further delays.