Elon Musk’s net worth reached $851 billion last week, adding over $22 billion in a single day. The rebound is driven by rising valuations in Tesla and SpaceX, bringing the billionaire closer to the $1 trillion mark.

Stock Performance and Analyst Targets

SpaceX shares ended the week at $136.9, up 30% from their yearly low. Tesla stock has risen 22% from its July low. Analysts project further upside for both entities.

UBS set a $210 target for SpaceX, while Bernstein sees it reaching $248. For Tesla, Stefel’s Stephen Gengaro targets $491, and RBC’s Tom Narayan projects $500.

Revenue Growth vs. Capital Expenditure

Tesla reported second-quarter revenue of $28.23 billion, a 26% increase driven by vehicle deliveries of 480,126 units, up from 451,758 in the prior period. However, heavy AI investments pushed free cash flow to a $1.09 billion outflow, reversing the previous quarter’s $1.4 billion inflow. Management expects negative free cash flow for the full year.

SpaceX delivered stronger top-line growth, with revenue jumping 92% to $7.8 billion. The connectivity division contributed over $4.2 billion, followed by AI ($2.5 billion) and space segments ($962 million). This growth coincided with a sharp rise in capital expenditure to $18.3 billion, up from $2.8 billion in the same period last year, linked to the Terafab project in Texas.

What the Numbers Show

The data reveals a divergence between top-line momentum and cash generation. While both companies posted significant revenue increases—26% for Tesla and 92% for SpaceX—their cash positions reflect heavy reinvestment. Tesla’s shift from positive to negative free cash flow highlights the immediate cost of its AI strategy, even as delivery volumes rise.

Tesla Inc. (NASDAQ: TSLA) is shifting focus toward its purpose-built Cybercab while investor skepticism mounts over its Full Self-Driving (FSD) hardware roadmap. The automaker also secured a significant commercial deployment for its Semi truck.

FSD Hardware Concerns

Investor Ross Gerber expressed doubts regarding Tesla’s ability to deliver unsupervised FSD using the existing HW4 chip. His concerns were reinforced by a JPMorgan Chase & Co. (NYSE: JPM) note detailing the company’s self-driving roadmap and upcoming FSD iterations.

Cybercab Strategy

JPMorgan reported that Tesla is prioritizing the scaling of the Cybercab over expanding its Model Y robotaxi fleet. The bank indicated confidence in Tesla’s ability to scale the dedicated vehicle and hinted at future models based on the Cybercab platform.

The company is reportedly preparing to launch the Cybercab in Austin, Texas, potentially as early as this month. This move aims to expand its Robotaxi network and compete directly with Alphabet Inc.’s (NASDAQ: GOOGL) Waymo.

Commercial & Supply Chain Updates

Einride AB (NASDAQ: ENRD) announced plans to deploy 500 Tesla Semis on its Saga AI platform for Amazon.com Inc. (NASDAQ: AMZN) and other customers. The deployment aims to convert signed contracts into revenue-generating freight capacity.

Meanwhile, CEO Elon Musk highlighted Tesla’s supply chain localization, stating that vehicles feature 84% American content. He emphasized that the company sources parts from American suppliers amid tariff changes under President Donald Trump.

Market Sentiment

Gary Black of The Future Fund LLC criticized optimistic Tesla influencers on social media, comparing their behavior to "college students doing tequila shots."