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Tesla (TSLA) rises as market sees SpaceX’s success as credibility boost for Elon Musk

Tesla’s stock (TSLA) is rising today, surpassing the market significantly despite the lack of significant news about the car manufacturer, but some analysts attribute the hope to SpaceX’s successful launch of two astronauts, which they see as a credibility boost for Elon Musk.

On Saturday, SpaceX successfully launched its Dragon spacecraft with NASA astronauts Bob Behnken and Doug Hurley aboard – becoming the first private company to send humans to the International Space Station.

You can follow our coverage of the mission at our new sister site Space Explored.

The historic moment is an important milestone for Elon Musk̵

7;s SpaceX, and although it doesn’t seem to have much to do with the CEO’s other company, Tesla, some share price rises are attributed to the performance.

Tesla’s stock is more than 6% today:

That’s despite the fact that there was little news about the car manufacturer since the market closed last week, despite the faster delivery timeline for the Model Y.

Some people attribute Tesla’s share price increase to SpaceX’s successful assignment this weekend.

Wedbush analyst Dan Ives wrote in a note to customers today:

Although SpaceX and Tesla are separate companies despite some R&D polling in some key areas, Musk DNA remains from a consumer perspective linchpin to both of these next-generation technical stalwarts and we would characterize the historical success of SpaceX as another major shot in the arm. the brand Tesla.

Adam Stanley, an analyst at Morgan Stanley, wrote something similar today:

In our opinion, Elon Musk is as identified with the creation and ambition of SpaceX as he is with Tesla. As such, we believe that SpaceX’s success in meeting some of the most sophisticated challenges in science has a direct impact on the public’s, investors’ and government’s perception of its ability to lead and execute. So does Elon Musk’s success (or lack thereof) on SpaceX have any bearing on the market’s perception of Tesla? In our opinion, it does. Although we cannot attribute a dollar amount to this factor, the credibility of Musk’s leadership outside the automotive industry is important to Tesla.

While Musk’s enhanced profile due to SpaceX’s success can have a positive impact on Tesla, the car manufacturer also received fairly good direct advertising during its launch.

Millions of people are watching the live stream of the mission and they saw astronauts being transported to the launch pad in Tesla Model X vehicles, which are the new official NASA vehicles to carry astronauts.

As we reported last week, Tesla and SpaceX have increased the synergy with more purchases between the two companies and even the last one sent some workers to the latter.

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