Tesla (TSLA) Stock Up 5% after SpaceX Astronaut Launch, Is There Any Relation?

| Updated
by Benjamin Godfrey · 3 min read
Tesla (TSLA) Stock Up 5% after SpaceX Astronaut Launch, Is There Any Relation?
Photo: NASA HQ PHOTO / Flickr

Elon Musk’s SpaceX astronaut launch has opened doors of opportunity to investors in space exploration. Meanwhile, Tesla (TSLA) stock is in the green today.

Events in the financial world are usually dependent on related factors. This is the case with Tesla Inc (NASDAQ: TSLA), the electric auto manufacturing company is experiencing a gain in its stock price as SpaceX successfully sent astronauts to space. SpaceX and TSLA share the same CEO in the person of Elon Musk and analysts have speculated that the gain in stock price is because of the correlation between the two companies. While SpaceX is not yet listed on any stock exchange, its recent activities give room for improved TSLA stock performance and other connected industries.

At the moment of writing, Tesla (TSLA) stock is 4.98% up, at $876.55. The market cap is around $162.49 billion.

About SpaceX Launch

SpaceX is a Californian based private aerospace manufacturing company and space transport service company founded by Elon Musk in 2002. Elon Musk nursed the vision to significantly reduce the cost of space travel by a factor of 10 while also making it possible for everyone to experience the thrills of space travel. The big dreams and ingenious foundation upon which SpaceX was created has earned the company recognition for exceptional inventions. These include being the first private company to successfully launch, orbit, and recover a spacecraft (SpaceX Dragon on COTS Demo Flight 1 on December 9, 2010), being the first private company to send an object into heliocentric orbit (Elon Musk’s Tesla Roadster on Falcon Heavy test flight on February 6, 2018) and more recently, the company is credited to be the first private company to send humans to the International Space Station on Sunday the 31st of May, 2020 with its Crew Dragon Demo-2. This latest feat was in collaboration with NASA who provided the two astronauts on board.

What SpaceX Success Can Mean for Tesla Investors?

It is no doubt that SpaceX’s achievements will redefine future market realities both for Telsa and SpaceX. The space exploration industry which is currently worth $350 billion has been forecasted by Morgan Stanley’s analysts to reach about $1 trillion. With this promising trend, investors can exploit opportunities in the space industry through investment in companies that manufacture and launch spacecraft and provide other logistics that make space explorations achievable.

SpaceX is currently privately funded and while investors await the plausible public listing of the company, efforts can be congregated on firms such as Aerojet Rocketdyne Holdings Inc (NYSE: AJRD), Virgin Galactic Holdings Inc (NYSE: SPCE) amongst others. With the prospects shown by space industry investments coupled with recent advances and milestones covered, space travel may be a probable feat that all may soon come to enjoy.

Business News, Editor's Choice, Market News, News, Stocks
Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.

Related Articles