Sell SpaceX, Buy Tesla?

2026-06-23 · Source: The Information · Field: Finance & Economics — Capital Markets & Investment Management, Corporate Finance & Treasury · Depth: Fundamental Awareness, short

Summary

Tesla shares climbed 1% to \$405.05 while SpaceX shares tumbled 16% to \$154.60, prompting investor questions about which offers better exposure to Elon Musk's ventures. SpaceX, despite its recent decline, still trades at over 100 times its projected 2025 revenue of \$18.7 billion, significantly higher than Tesla's roughly 14 times premium on \$95 billion in revenue. Speculation about a future merger of Musk's companies, including SpaceX, Tesla, xAI, and X, suggests Tesla might be a more accessible entry point for a combined "Musk Inc." empire. Separately, Google invested \$75 million in A24 for AI tool development, sparking public concern over tech's influence in Hollywood, especially after Amazon MGM Studios dropped an OpenAI-related film following Amazon's \$50 billion OpenAI investment. However, Mubi, backed by an OpenAI investor, is reportedly considering the film, indicating some independent financing remains.

Key takeaway

For investors seeking exposure to Elon Musk's ecosystem, consider Tesla as a potentially more accessible entry point given its roughly 14 times revenue premium compared to SpaceX's over 100 times. While merger speculation between Musk's companies persists, your investment strategy should weigh current valuations and market reactions to post-IPO debt offerings. Additionally, if you are a film industry stakeholder, closely monitor tech giants' investments, as they can spark public backlash and raise concerns about creative independence, despite some counter-examples.

Key insights

Musk's empire valuation disparities and AI's controversial influence in Hollywood present complex investment and ethical considerations.

Principles

• "Musk premiums" inflate valuations beyond industry peers.
• Tech investments in creative industries can spark public backlash.
• Merger speculation can influence investment decisions.

In practice

• Consider Tesla for "Musk Inc." exposure due to lower valuation.
• Monitor tech investments in film for potential influence shifts.
• Evaluate post-IPO debt offerings as a business indicator.

Topics

• SpaceX Valuation
• Tesla Investment
• AI in Film
• Corporate Mergers
• Strategic Investments
• Compute Infrastructure

Best for: Investor, Consultant, Executive

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Editorial summary, takeaway, and curation by AIssential. Original article published by The Information.