TLDR
- Tesla stock rose about 2% in early Tuesday trading, extending a three-day rally that has added roughly 8% to shares.
- SpaceX stock jumped even harder, up about 17% over the same three-day stretch.
- Wall Street widely expects Tesla and SpaceX to merge eventually, since Elon Musk controls both companies.
- Musk confirmed weekend talks with Taiwan Semiconductor about a joint chip plant for Tesla, SpaceX and xAI.
- Tesla reports earnings on Oct. 21, with analysts expecting 44 cents per share, down from 50 cents a year ago.
Tesla stock climbed again on Tuesday, trading near $382, up almost 1% in premarket action. That extends a rally that has pushed shares up about 8% over the past three trading days.
SpaceX stock is riding an even bigger wave. It gained for a third straight session, up roughly 17% over that stretch.
The two companies often move together. Both are run by Elon Musk, and both are pouring money into AI projects.
Wall Street has long bet that Tesla and SpaceX will merge someday. That theory isn’t official, but it keeps showing up in how investors trade the two stocks side by side.
Musk gave traders a reason to think big over the weekend. He confirmed that Tesla and SpaceX are in early talks with Taiwan Semiconductor Manufacturing about building a dedicated chip facility, nicknamed “Terafab.”
The plant would reportedly supply chips to Tesla, SpaceX and xAI. Nothing is finalized, but the idea alone seemed to excite buyers on Monday.
What’s Driving the Rally
Tesla’s own numbers gave investors something concrete to cheer. The company delivered about 487,000 vehicles in the third quarter, beating Wall Street estimates by around 5%.
That marks a sequential improvement and raises hopes that 2026 could be Tesla’s first year of delivery growth since 2023. Not every part of the business is firing, though.
Energy storage deployments missed estimates for the quarter. Tesla also landed a 50-truck Semi order from IMC Logistics, a small but real sign of commercial demand beyond passenger cars.
Analyst opinion remains split. One analyst rates Tesla a Strong Buy, 23 rate it Buy, 18 say Hold, and five rate it Sell, putting the average rating at Hold with a price target near $412.
Some firms stayed cautious even as the stock climbed. HSBC raised its price target but kept a Reduce rating, pointing to Tesla’s price-to-earnings ratio above 350 as a reason for concern.
The Trillion-Dollar Side Effect
The rally has made Musk a trillionaire again, according to Forbes. His roughly 42% stake in SpaceX alone is worth close to $1 trillion at current prices.
Calculating Musk’s full net worth is messy. Methods vary depending on how loans, smaller company stakes, and restricted stock awards get treated.
Whatever the exact number, Musk remains one of the richest people alive by a wide margin. The gains in both Tesla and SpaceX stock are the main reason why.
Looking ahead, Tesla’s next earnings report lands Oct. 21. Wall Street expects 44 cents per share, down from 50 cents in the same quarter last year.
Investors will likely care less about the earnings number itself and more about updates on Tesla’s AI and robotaxi push. Musk already gave a preview of that over the weekend.
He said Austin robotaxi operations now run until 11 p.m. Musk also joked on X that the main technical challenge right now is spotting “grey kittens on grey tarmac in the dark” to avoid hitting pets at night.
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