The manned space mission of the US company SpaceX was successful. And Tesla’s stock (NASDAQ: TSLA) promptly shoots up. For Elon Musk, who runs both companies, the trip into space is obviously a stroke of luck on Earth.
Tesla’s share price in New York rose 7.56 percent on Monday to almost hit the $ 900 mark, increasing the company’s stock market value by $ 11 billion in one day. The auto company is now worth around $ 166 billion again, not too far from its all-time high before the Corona pandemic broke out in February.
Is TSLA stock overvalued now?
SpaceX and the electric car manufacturer only have one thing in common: Elon Musk. The billionaire, who has a massive stake in both companies, founded SpaceX and financed and managed Tesla at an early stage, is a kind of person for both companies. And since SpaceX is not (yet) listed, investors are clearly expressing their trust in Musk through purchases from Tesla. This might seem like overvaluation (technical indicators on the security do not justify its current price).
But Tesla boss did not miss the symbolic references to Tesla around the launch of the SpaceX rocket to the ISS space station. The space travelers were driven to the launch pad in white Tesla cars.
In addition, there will soon be tangible business connections between the two companies. SpaceX thrusters are to be used in the new Tesla Roadster. Conversely, Tesla motors are to be used to control the rocket flaps in the “Starship” from SpaceX.
Is Tesla BUY or a SELL?
Incidentally, Elon Musk uses a “vertical” business model for both companies. Instead of relying on suppliers, Tesla and SpaceX mainly manufacture components themselves to keep costs down which is a great long-term strategy. That is why people love Tesla (NASDAQ: TSLA) stocks.
The proof of trust in the Tesla share after the SpaceX success is therefore not only of a psychological nature. Investors seem to trust Musk’s approach to further success, here and there.
Even with this price TSLA is still a buy because people behind tesla are working mostly on the technology for the future which can bring in some great profits.
Why is Tesla stock dropping today?
After a huge rally there is always a period of a light setback, which seem to be situation here. Gaining 11% in a day is a lot already, you cannot expect Tesla stock price to go another 11% the very next day. Predictions are