Until Space Exploration Technologies (NASDAQ:SPCX) merges with Tesla (NASDAQ:TSLA | TSLA Price Prediction), Elon Musk fans are going to have a tough choice when it comes to which name is worth topping up at any given moment. Of course, owning both equally might be the move for the biggest Believers of Elon. At the same time, though, SpaceX is the “new” play and, in many ways, it’s quite exciting to trade in the first month or so of its history on the public markets.
Of course, as fun and exciting as SpaceX’s orbital data centers, a key driver for the firm, not everyone is convinced that the effort will be a breakthrough success. OpenAI top boss Sam Altman quickly fired back at Elon Musk, saying that he’s the one “selling public market investors on short-term space data centers” on X after being called “Scam Altman” when news broke that Apple (NASDAQ:AAPL) filed suit against OpenAI.
Indeed, quite a bit of drama and a heated exchange of words between two of the biggest visionaries in the AI revolution. Of course, Altman isn’t the only one who’s quite skeptical over the direction that SpaceX might be taking, especially when it comes to data centers in space.
At the same time, Elon Musk is not afraid of the high risk of failure. He’s more than willing to try something outlandish, even if the costs are astronomical. For now, time will tell if orbital data centers represent the next big step for AI infrastructure or if it’s just an excuse to combine two of the hottest technological trends on the market to get investors excited.
SpaceX’s descent is looking interesting for those who haven’t punched a ticket
For now, it seems like SpaceX is the riskier of the two public Elon Musk companies, with shares most recently tumbling to around $139 and change per share. The IPO price is coming close, and maybe those fans who held out might have a chance to get in at an even more significant discount to those who just had to buy on the very first day.
It’s hard to believe that most public market investors in the name are now underwater on their investment. And questions linger as to how low the now-$1.83 trillion company can go, even as sell-side analysts tout their high price targets. In many ways, it feels like space data centers are bound to be a success.
At least, that was my takeaway looking at the many bullish price targets on the shares. There are, indeed, many believers in the analyst community. What’s most striking is the $800 Street-high target, which implies a multi-bagger run.
It’s not all too often you see such a target resulting in the ballpark of a quintupling. Undoubtedly, a lot has to go right if SpaceX is going to make such a run. And while I wouldn’t follow analyst recommendations based on the price target alone, I do certainly find it remarkable. For now, SpaceX is either deeply undervalued (based on some of the bullish analysis out there) or outrageously overvalued (think traditional valuation metrics). Either way, it’s probably going to remain the hotter Elon Musk stock for the rest of the year.
Tesla’s robotics revolution is up ahead
The electric vehicle (EV) titan has shifted gears to produce Optimus humanoid robots. And it feels like this new era is here to stay, especially as AI models become capable enough to make working robots a thing. Of course, like SpaceX, the Tesla story is starting to get science fiction again, with all the unique parts that go into making a complex humanoid.
With Optimus production moving ahead and the Terafab, a daunting project in itself, poised to help alleviate the bottleneck on the chip side, questions linger as to whether Tesla is the timelier play than SpaceX.
Given that xAI is a part of SpaceX, the shares project that is Terafab, and how critical AI is to powering Optimus, I’d argue that a SpaceX-Tesla merger just makes sense. Time will tell when or if such a historic combo will ever get the green light. But, in my view, I think the robotics revolution is timelier than space data centers and the explosive growth of the space economy. Indeed, it might be too early in the game to go for SpaceX, while it might be prime time to go for Tesla and Optimus.
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