Tesla has opened reservations for its new Roadster ahead of the car’s formal unveiling, requiring a $50,000 deposit per reservation. At the same time, investors are once again focusing on the possibility of a major transaction between Tesla and SpaceX. In early U.S. trading on September 21, Tesla shares rose about 3%, while SpaceX-related shares gained roughly 2%, putting both developments at the center of market attention.
Roadster Reservations Require $50,000
Tesla began accepting reservations for the new Roadster on September 18 and plans to hold a launch event on October 1. The project has been in development for about a decade. Tesla has set the reservation amount at $50,000, but the company has not provided a production or delivery timeline in the information disclosed so far.
This is not the first time Tesla has accepted advance reservations for the Roadster. When it first announced plans for the next-generation model in November 2017, the company offered reservations for the first 1,000 vehicles, charging $250,000 per car. Tesla initially expected production to begin in 2020, but that timetable was postponed several times.
The latest reservation launch therefore matters for more than the size of the payment. Investors are also watching whether Tesla can move the product through its revised unveiling, production and delivery plans. The Roadster remains an important project for Tesla’s high-end electric-vehicle lineup and brand positioning, but opening reservations does not confirm that mass production is secured.
SpaceX Technology Could Feature at the Launch
Discussion around the October 1 event has also focused on whether the new vehicle could demonstrate some form of flight capability. One concept circulating in the market involves the use of custom thrusters designed by SpaceX. Tesla, however, has not confirmed that a flying car will be shown at the event and has not disclosed specifications, use cases or a production plan for any such technology.
If the Roadster project does include technology of this kind, it would highlight the engineering links among companies controlled by Elon Musk. Tesla and SpaceX have increasingly been viewed by the market as having closer ties through engineers, technical capabilities and certain resources, but the two companies remain separate in their products, capital structures and operations.
Investors Revisit a Possible Tesla-SpaceX Combination
After SpaceX completed a record-sized initial public offering, Wall Street began discussing another transaction that could significantly change the relationship between the two companies: a large-scale combination of Tesla and SpaceX. The information currently available shows renewed market interest in that possibility, but no formal agreement has been announced. There has also been no disclosure of a transaction structure, valuation, share-exchange ratio or regulatory arrangements.
The companies’ increasingly close cooperation among engineers and resources is one reason merger speculation has resurfaced. If a transaction were ever pursued, investors would need to assess the effect on Tesla shareholders, SpaceX’s valuation, management control and the way the two businesses might be integrated. Until a formal announcement is made, however, the discussion remains speculative.
Eva Ados, chief investment strategist at ERShares, has discussed the Tesla-SpaceX merger rumors and their potential implications for portfolios, but the available material does not provide a specific view from her on whether a transaction will occur. The confirmed developments are that Tesla has opened reservations for the new Roadster, SpaceX has drawn greater capital-markets attention following its listing, and no merger between the two companies has been publicly confirmed.