Tesla stock made it three in a row on Tuesday as Morgan Stanley positioned itself to take Elon Musk’s rocket companypublic.

Shares of the electric vehicle maker gained 1.9%, closing at $425.21, while the S&P 500 fell 0.3%, and the Dow Jones Industrial Average gained 0.1%.

The stock shook off news that Raj Jegannathan, a sales and service executive, was leaving the company after more than a decade. He isn’t part of the C-suite of executives. Still, investors closely follow Tesla’s management changes.

The move followed increases of 3.5% on Friday and 1.5% on Monday. The gains were a welcome relief to investors. Tesla stock closed below $397.05 on Thursday, its first close below $400 since late November.

Tesla stock has languished since Elon Musk’s car company reported fourth-quarter earnings on Jan. 28. Coming into Tuesday trading, shares were down more than 3% since then. Earnings topped Wall Street estimates. Still, investors appear to be waiting for more AI developments before taking the stock higher.

Investors might also be distracted by SpaceX, Musk’s rocket company, which is planning an initial public offering later this year. Ahead of the IPO, SpaceX recently acquired xAI, valuing the combined company at $1.25 trillion.

Monday evening, The Wall Street Journal reported that Morgan Stanley was bringing back investment banker Michael Grimes as chairman of its investment banking unit. Grimes helped Musk take Tesla public in 2010 and buy Twitter in 2022. (Twitter, renamed X, was bought by xAI in 2025.)

The stakes for investment banks are high. SpaceX is planning to raise tens of billions, generating hundreds of millions in IPO fees.

The stakes for investors are high, too. The SpaceX IPO will give them a chance to invest in a high-growth company with a near-monopoly. SpaceX accounts for more than half of all orbital launches worldwide. Excluding China and Russia, SpaceX’s share is closer to 75%.

A SpaceX IPO could put pressure on Tesla stock, as Musk fans decide which company to hold. Many Musk fans, however, hope that the SpaceX IPO is just one step on the path to a Musk megacorporation with SpaceX, xAI, and Tesla combined.

Tesla owned a small stake in xAI before it was acquired by SpaceX.

Coming into Tuesday trading, Tesla stock was up 15% over the past 12 months, in line with the S&P 500.