Tesla (TSLA) Gains 8% as SpaceX Surges 17% on TSMC Chip Plant Discussions

TLDR

• Tesla shares advanced approximately 2% during early Tuesday sessions, continuing a three-session climb that added roughly 8% to the stock’s value.
• SpaceX shares experienced an even steeper ascent, gaining about 17% during the identical three-day period.
• Market watchers have long anticipated a potential merger between Tesla and SpaceX given Elon Musk’s leadership of both enterprises.
• Musk disclosed weekend discussions with Taiwan Semiconductor Manufacturing regarding a collaborative chip manufacturing facility serving Tesla, SpaceX and xAI.
• Tesla’s quarterly earnings are scheduled for Oct. 21, with Wall Street forecasting 44 cents per share versus 50 cents in the prior-year quarter.

Tesla stock continued its upward trajectory on Tuesday, hovering around $382 with nearly 1% gains in premarket trading. The advance extends a powerful rally that has lifted shares approximately 8% across the last three trading sessions.

Tesla, Inc., TSLA

SpaceX shares are experiencing an even more dramatic surge. The private space company’s stock has climbed for three consecutive sessions, accumulating roughly 17% in gains over that timeframe.

The parallel movements aren’t coincidental. Elon Musk leads both organizations, and each company is dedicating substantial resources toward artificial intelligence initiatives.

Market participants have frequently speculated about an eventual combination of Tesla and SpaceX. While no formal announcement exists, this expectation influences how traders approach both equities simultaneously.

Musk provided fresh catalysts for speculation during the weekend. He acknowledged preliminary discussions between Tesla and SpaceX with Taiwan Semiconductor Manufacturing Company about constructing a specialized chip manufacturing facility dubbed “Terafab.”

The proposed facility would ostensibly produce semiconductors for Tesla, SpaceX and xAI. While nothing has been finalized, the concept alone appeared to energize investors on Monday.

What’s Driving the Rally

Tesla’s quarterly delivery figures provided tangible positive news. The electric vehicle manufacturer delivered approximately 487,000 vehicles during Q3, surpassing Wall Street projections by roughly 5%.

The result represents sequential progress and fuels optimism that 2026 might mark Tesla’s first year of delivery expansion since 2023. However, not every business segment performed equally well.

Energy storage deployments fell short of analyst expectations for the quarter. On the commercial front, Tesla secured a 50-truck Semi order from IMC Logistics, representing modest but tangible evidence of demand beyond consumer vehicles.

Wall Street sentiment remains divided. Among analysts, one assigns a Strong Buy rating, 23 recommend Buy, 18 suggest Hold, and five advise Sell, resulting in a consensus Hold rating with an average price target around $412.

Certain firms maintained conservative stances despite the stock’s advance. HSBC increased its price objective while preserving a Reduce rating, citing Tesla’s price-to-earnings multiple exceeding 350 as justification for caution.

The Trillion-Dollar Side Effect

The recent surge has restored Musk’s trillionaire status, per Forbes calculations. His approximately 42% ownership stake in SpaceX alone approaches $1 trillion at present valuations.

Determining Musk’s precise net worth involves complexity. Methodologies differ based on how outstanding loans, minority holdings in smaller ventures, and unvested equity compensation are accounted for.

Regardless of the exact figure, Musk continues ranking among the world’s wealthiest individuals by a substantial margin. Appreciation in both Tesla and SpaceX valuations constitutes the primary driver.

Looking forward, Tesla’s upcoming quarterly results arrive Oct. 21. Consensus estimates call for 44 cents per share, representing a decline from 50 cents during the comparable quarter last year.

Market participants will probably focus less on the headline earnings figure and more on management commentary regarding Tesla’s artificial intelligence initiatives and robotaxi program. Musk offered a glimpse of progress during the weekend.

He revealed that Austin robotaxi services now operate until 11 p.m. Musk additionally quipped on X that the primary technical hurdle currently involves detecting “grey kittens on grey tarmac in the dark” to prevent nighttime collisions with pets.