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) has discontinued its Solar Roof tiles, telling certified third-party installers it will supply conventional solar panels instead. The move formalizes a strategic retreat from the residential roofing segment.

The electric vehicle maker confirmed the decision in a report by Electrek. Tesla cited economic unviability as the primary reason for halting the product line. The company’s website now redirects the Solar Roof page to its standard solar panels section, and the product has been removed from the Energy navigation menu.

Product Discontinuation

Tesla ended sales of its Solar Roof tiles. The company determined that the product could not be sustained economically. This decision applies to the residential solar roofing segment. Tesla stopped including solar roof deployment figures in its quarterly reports starting in early 2024, signaling the gradual phase-out before this formal announcement.

Market Implications

The discontinuation signals a retreat from the residential roofing market. Tesla previously promoted Solar Roof as a key part of its energy ecosystem. The exit suggests challenges in achieving profitability for this specific product line. Existing customers face a shift toward traditional solar solutions paired with Powerwall batteries.

Historical Context

Elon Musk unveiled Tesla’s solar roof tiles in 2016, shortly before shareholders approved the roughly $2.6 billion acquisition of SolarCity. In November 2021, Tesla launched a new version with increased power and efficiency. However, installations often cost far more than initial quotes. Price hikes led to a class-action lawsuit settled for $6 million in 2023.

Strategic Pivot

Tesla has shifted toward standard rooftop solar paired with Powerwall. Elon Musk emphasized plans for large-scale U.S. solar panel manufacturing rather than Solar Roof tiles. In May 2024, Musk announced plans for the Texas gigafactory to be fully covered by solar panels, highlighting the focus on conventional technology.