Tesla shares dropped nearly 2% on Thursday, extending a losing streak to four sessions as a broader technology sell-off and rising speculation about a potential SpaceX merger weighed on investor sentiment. The electric vehicle maker's stock is down about 18% this year, with investors reassessing the company's artificial intelligence plans, upcoming product announcements, and the possibility of major corporate restructuring under CEO Elon Musk.
Tesla finally revealed its second-generation Roadster with SpaceX thrusters on Thursday via livestream from a SpaceX test site in McGregor, Texas. The demonstration showed a driverless prototype climbing a curved ramp, flipping off it, and landing smoothly on its wheels. The car then used thrusters to hop over a lineup of five Teslas, including the Semi and the Cybercab. Tesla engineering VP Lars Moravy said the vehicle can generate up to 2G of suction, enough to keep the prototype pinned to an inverted ramp.
The thruster system uses compressed air stored in high-pressure tanks and pushed through 10 nozzles to jump, rotate, and accelerate the car. Tesla says the system runs on compressed air with no fuel involved, and Musk said the tanks can be recharged while driving. The standout performance figure was a 0–60 mph time of 0.81 seconds, with a quoted top speed above 230 mph and more than 300 miles of range. Musk described the car as 'not necessarily a safety-optimized car' and said it will be the only Tesla that stays human-driven going forward.
Barclays analyst Dan Levy said a merger between Tesla and SpaceX could be announced before Tesla's annual meeting on December 6. Levy sees SpaceX as the likely acquirer in an all-stock transaction, with Tesla shareholders receiving SpaceX shares. Based on current valuations, SpaceX is estimated at about $2.1 trillion compared with roughly $1.5 trillion for Tesla. Musk would own about 37% of the combined company and retain around 57% of voting power, according to Barclays.
The Roadster reveal also comes amid a difficult macro backdrop. US wholesale inflation accelerated in September to its highest level since 2022, UBS projected another Federal Reserve rate increase in March 2027, and the Philadelphia Semiconductor Index declined for a seventh straight session. Higher interest-rate expectations can pressure growth-oriented equities by increasing borrowing costs and making bonds more attractive relative to stocks.
Musk has downplayed the Roadster's financial impact, previously calling it a 'small potato situation' for Tesla's finances. Morningstar expects around 2,000 Roadster sales per year, compared with the 1.6 million vehicles Tesla sold last year. Tesla is splitting the Roadster into three trims: Performance, Thrust, and Rocket. Reservations for the Performance version cost $50,000, while the Thrust version requires a $250,000 reservation. Musk said production is planned for 2028, but no delivery date was given.
