SpaceX , and as a result, Tesla also had a successful weekend.
Struggling Tesla shareholders might benefit from something like that. right now .
On Friday evening, SpaceX launched NASA’s Crew-10 The mission includes Commander Anne McClain, Pilot Nichole Ayers, Mission Specialist Takuya Onishi, and Russian cosmonaut Kirill Peskov traveling aboard a Dragon spacecraft bound for the International SpaceStation.
The dragon capsule successfully rendezvoused with the International Space Station late Saturday evening, approximately 28 hours following its launch. With this mission, SpaceX has now transported 60 astronauts to the ISS.
The sole American business capable of undertaking this journey is SpaceX.
The mission will similarly aid in the return of astronauts Butch Wilmore and Suni Williams. They were scheduled for June. traveled to the ISS aboard a Boeing Starliner, however, encountered some technical issues prevented Boeing won’t be involved in their return journey. Williams and Wilmore will come back using the Dragon capsule presently attached to the ISS. The newly arrived spacecraft will remain docked.
This marks yet another significant achievement for SpaceX. However, it raises a pertinent question: what connection does SpaceX have with Tesla? Several factors come into play here.
To begin with, Elon Musk naturally oversees both entities. (Based on current valuations, his stake in Tesla is worth approximately $170 billion, whereas his share in SpaceX is around $150 billion.)
Following this, a successful mission by SpaceX benefits Musk personally, and Tesla’s investors eagerly welcome any positive developments concerning him nowadays. For several weeks now, the investors have been focused on this. have worried That Musk’s involvement in the Trump administration is alienating key Tesla customers—those who lean politically left and aim to be environmentally friendly.
Tesla's sales performance in the U.S., Europe, and China was sluggish at the beginning of the year. This decline isn’t solely attributable to Musk; according to an RBC analyst, this could have various contributing factors. Tom Narayan points out that the Model Y changeover explains part of the weakness. Tesla recently updated its most popular model and is ramping up production of the new Y. There is typically an air pocket when sales of an old car model fall as buyers wait for the upgrade.
Finally, there is a robot angle.
Musk tweeted about SpaceX on Saturday morning before the docking, saying that his rocket company will be headed to Mars in 2026, “carrying Optimus,” adding “if those landings go well, then human landings may start as soon as 2029.”
Humans can aim for Mars approximately every two years. This occurs when the orbits of both planets align closely together.
Optimus is Tesla's humanoid robot, developed with artificial intelligence training from the company, aiming to begin sales possibly as soon as this year.
Musk, along with NVIDIA CEO Jensen Huang, believe The era of helpful AI-powered robots is imminent. This represents a novel venture for Tesla, and having a robot aid in a journey to Mars, even in a minor role, would signify significant advancement in robotics development.
Narayan has assigned a 'Buy' rating to Tesla stocks. He estimates that the emerging robotics sector accounts for just 1% of his $440 price objective. This valuation might increase further should Optimus effectively aid SpaceX in reaching Mars.
AI-powered self-driving vehicles account for approximately 57% of his price estimate. Tesla plans to introduce a robotaxi service possibly starting in June.
The excitement around robotaxis contributed to Tesla reaching nearly $489 per share in mid-December. As of Monday's trade, the stock price had fallen by 49% from its peak. Moreover, Tesla’s shares have declined for eight straight weeks, with a loss of 41% during this period. In comparison, the S&P 500 has decreased by approximately 6% over the same timeframe.
painful drops like those are why Tesla investors are grasping at any positive news, even somewhat relevant good news, at this moment.
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