An EV Business Revival and Potential SpaceX Merger: Is Tesla Stock a Buy?
2026-10-26 07:39
•Geoffrey Seiler •The Motley Fool
••••••• •• Axe Cap view
Tesla’s Turnaround: Why the EV Giant Deserves a Second Look
Tesla's core EV business shows signs of revival, with key drivers like Full Self-Driving adoption and new product launches on the horizon.
Tesla’s recent quarterly results may have underwhelmed some, but focusing on the headline misses the bigger picture. They’ve got 1.7 million paying customers for Full Self-Driving software—more than three times as many as just a year ago—and their Cybercab robotaxi promises to reduce costs significantly by cutting parts in half. The long-play here is the Tesla Semi, targeting millions of trucks by 2030, plus the ambitious Optimus robot coming in the next few years. On the flip side, while a SpaceX merger could unlock synergies in AI and robotics, it hinges on shareholder approval—a hurdle that isn’t guaranteed. For South African investors, the rand trading near 18 USD/ZAR means global tech plays like Tesla need to beat currency headwinds just to break even. Still, the growing EV market and Tesla’s innovation pipeline justify a watchful approach. If electricity infrastructure and regulation keep pace locally, these trends might eventually filter into JSE renewables and tech exposure. this is just our opinion and not financial advice
We’d watch Tesla closely and consider starting small positions on dips, especially if USD/ZAR stabilizes below 17.5. For now, avoid jumping in full throttle until more clarity emerges on SpaceX and production ramp-ups.
- TSLA
- USD/ZAR
- SpaceX merger may fail to get shareholder approval
- Rand weakness could offset gains for USD-denominated tech shares
6/10
Tesla stock is viewed as a buy opportunity despite lukewarm Q3 results, with the core EV business showing signs of recovery driven by strong Full Self-Driving adoption (1.7M paid customers). Key growth catalysts include the upcoming Cybercab robotaxi launch, Tesla Semi truck production ramping to 5M annually by 2030, and Optimus humanoid robot commercialization expected by end of 2027. A potential merger with SpaceX could provide additional upside, though it requires 50% shareholder approval.
Our take is based on reporting first published by The Motley Fool.