Steve Nesius | Reuters
Elon Musk’s two largest publicly traded businesses are moving higher today, but the market is responding to different catalysts. SpaceX shares rose about 3.6% in midday trading after Pivotal Research initiated coverage with a Buy rating and a US$220 price target, implying nearly 50% upside from recent levels.
Tesla, meanwhile, was trading around US$360.63, up roughly 1.9%, as investors continued to assess the company’s transition from electric vehicles toward autonomous transportation. The debate intensified following the rollout of the Cybercab, Tesla’s steering-wheel-free robotaxi, which is becoming an increasingly important part of the company’s long-term investment story.
Why SpaceX Is Rising
The latest move in SpaceX is closely tied to Starship. Pivotal Research analyst Jeffrey Wlodarczak argues that successfully making the massive rocket rapidly reusable could fundamentally change the economics of reaching orbit, potentially reducing launch costs and opening markets ranging from larger Starlink deployments to space-based AI infrastructure.
The timing is significant. SpaceX is preparing for the 14th Starship test flight, expected later this month. The company has not yet demonstrated commercial operations for the vehicle, making Starship one of the largest unresolved variables behind the company’s enormous valuation.
The market is therefore beginning to price something larger than today’s SpaceX business. Investors are increasingly evaluating what happens if SpaceX can turn Starship into a genuinely reusable transportation system for orbit.
Tesla Is Being Valued On What Comes Next
Tesla’s story is different but follows a similar pattern.
The company is increasingly being valued not only as an automaker, but as a potential physical AI and autonomous transportation company. The Cybercab is central to that transition, with its two-seat design and absence of a steering wheel reflecting Tesla’s attempt to build a vehicle specifically around autonomous operation rather than adapting conventional cars to it.
The market remains divided. Supporters see autonomous taxis as a potentially enormous new business; skeptics point to unresolved questions around economics, regulatory approval, scalability and the actual pace of deployment. That uncertainty explains why Tesla’s shares remain highly sensitive to every new development surrounding autonomy.
One Investor, Two Different Bets
The interesting connection between today’s moves is not simply Elon Musk.
It is infrastructure.
SpaceX is attempting to build infrastructure above Earth through Starlink and a radically cheaper launch system. Tesla is attempting to build an autonomous transportation infrastructure on Earth through AI-driven vehicles and robotaxis.
Both strategies depend on technologies that are not yet fully mature.
That makes today’s gains less about immediate earnings and more about investors assigning greater value to what these businesses could become if Musk’s largest technological bets work at scale.
