Key Points
The IPO of Space Exploration Technologies (NASDAQ: SPCX) may have been a record-breaking spectacle that captured the attention of investors worldwide, but it’s been a roller-coaster ride ever since.
The stock is trading at around $135 per share as of this writing, a far cry from the $225 it commanded in its earliest trading days last month.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
While SpaceX is still trying to find its footing in the public markets, Elon Musk’s other mega company, Tesla (NASDAQ: TSLA), just posted its best sales quarter in years. So is Tesla a better buy in the second half of 2026? My prediction is that it is absolutely the better company for investors right now.
Image source: The Motley Fool.
It’s all about valuation
Valuation is the biggest reason Tesla is a better second-half buy for this year. SpaceX is newly public, and history tells us IPOs tend to underperform in their first three to five years. I don’t believe SpaceX will buck that trend, and its nearly $2 trillion market cap leaves very little room for error.
Based on what is known about SpaceX’s revenue, even trading below its IPO price, the stock is still about 100 times the company’s sales. While Musk and his team have made strategic moves and acquisitions to close the gap, I don’t believe it’ll be enough to justify the price for several more years.
Tesla, on the other hand, crushed second-quarter analysts’ delivery expectations as well as its own, serving up more than 480,000 vehicles. This breakout quarter could be a sign of a turnaround for Tesla regarding both Musk’s reputation and EV demand.
Tesla still faces plenty of headwinds. Many legacy automakers have scaled back or abandoned their EV initiatives as demand stalled in recent years. With the elimination of the federal tax incentive, the EV industry took a hard hit, but that could change as states add their own tax breaks for electric car buyers.
Tesla’s forward P/E is still quite rich at 172 and is based more on autonomous driving technology than current car sales. Tesla also faces increasing competition in the space.
An energetic growth engine
More importantly, Tesla has a growth catalyst outside of its cars and robotics divisions. Tesla Energy could be the real winner as data centers continue to pop up in the U.S. and beyond. The potential here is enormous and imminent. Tesla’s Megapack is an integrated battery system that provides clean, reliable, and cost-effective energy storage to stabilize grids and prevent outages.
As data centers receive backlash for their energy consumption, Tesla’s solutions become even more relevant.
Regarding future opportunities and potential, I have to give SpaceX the edge here, as space is literally infinite. Still, I can’t imagine buying the stock right now at its current price. Investors looking for Musk-related upside but with slightly less risk and a longer track record would do well to buy and hold Tesla right now.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $538,595!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $63,517!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $400,964!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of July 18, 2026.
Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.