Tesla Inc.‘s (NASDAQ:TSLA) ties to Elon Musk-led SpaceX just got deeper with a new investment in the commercial space flight company amid Terafab collaboration.
$2 Billion Investment
In its quarterly earnings report released on Wednesday, the EV giant shared its investment in SpaceX. The EV giant’s report showed a $2 billion charge due to its “SpaceX equity investment.” The company also expanded on why its collaboration with the company mattered.
“We are expanding our scope of manufacturing to include semiconductor fabrication, an important step to ensure sufficient and resilient chip supply,” Tesla said, adding that the SpaceX partnership would “build the largest chip fab ever: vertically integrating logic, memory and advanced packaging.” The EV maker also said that it expects “greater chip
demand,” which would exceed existing industry capacity.
Tesla’s Earnings Call
Tesla reported stronger-than-anticipated earnings after the market close on Wednesday, recording first-quarter 2026 revenue of $22.71 billion. Tesla’s revenue was up 16% YoY and exceeded the analyst consensus of $22.39 billion. Tesla’s earnings per share of 41 cents, too, beat market estimates of 37 cents per share.
Meanwhile, Musk had also confirmed on the earnings call that Tesla vehicles equipped with the EV maker’s Hardware 3 (HW3) chip would not achieve Unsupervised Full Self-Driving (FSD). However, Musk offered discounted trade-ins for HW3 vehicle owners, as well as touted the idea of setting up “mini” factories to fit HW3 vehicles with HW4 and better cameras.
Elon Musk’s Optimus Update
Notably, when asked about the progress of the next generation of Optimus robots, Musk accused Tesla’s rivals of conducting “frame-by-frame” analyses of Optimus’ reveals and then copying what Tesla has done. Musk then shared that a reveal timeline close to production could be expected.
According to Benzinga Edge Rankings, Tesla offers satisfactory Momentum, but poor Value. It provides a favorable price trend in the Long term.
Price Action: TSLA declined 2.17% to $377.95 during pre-market trading on Thursday.
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Photo courtesy: Frederic Legrand – COMEO from Shutterstock
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