For Immediate Release
Chicago, IL – July 16, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Tesla Inc. TSLA, Space Exploration Technologies Corp. SPCX, Amazon.com, Inc. AMZN and Microsoft Corp. MSFT.
Here are highlights from Wednesday’s Analyst Blog:
Is SpaceX Replacing Tesla as Elon Musk's Biggest Value Creator?
For years, Tesla Inc. has been the crown jewel of Elon Musk's businesses. The electric vehicle (EV) pioneer had revolutionized the auto industry with its innovations and generated enormous wealth for shareholders, becoming the golden goose of Musk's sprawling empire.
But the narrative is gradually beginning to shift.
Space Exploration Technologies Corp.has rapidly emerged as one of the world's most valuable business enterprises, driven by the success of its reusable launch business and the explosive growth of Starlink, its satellite broadband unit. As SpaceX's valuation continues to soar, several experts believe that it has overtaken Tesla as the largest contributor to Musk's net worth, with exposure to several powerful secular growth themes.
Let us delve a little deeper into the companies' competitive dynamics to analyze the claim.
Why SpaceX Is Gaining the Upper Hand
With a blockbuster IPO that raised an unprecedented $75 billion, SpaceX surpassed Amazon.com, Inc. by market capitalization and even briefly overtook Microsoft Corp.. From revolutionizing launch services with reusable rockets to building the world's largest satellite broadband network, SpaceX intends to strengthen its position as the dominant force in the rapidly expanding space economy.
Leadership in Commercial Space Launches
SpaceX has built an enviable competitive moat through its reusable rocket technology. Its Falcon 9 remains the industry's workhorse, enabling the company to dominate the global commercial launch market while serving NASA, the U.S. Department of Defense and several international customers. Frequent launches not only strengthen revenue visibility but also reinforce SpaceX's technological leadership. The company now conducts more launches annually than any of its global competitors, giving it a commanding share of the commercial launch market.
Starlink Has Become Major Growth Engine
Starlink is arguably the biggest driver of SpaceX's rising valuation. The satellite broadband business has expanded rapidly by providing high-speed Internet connectivity to consumers, businesses, airlines, maritime operators and government agencies across the globe. Unlike the cyclical launch business, Starlink generates recurring subscription revenue, offering investors a more predictable and scalable growth model. As subscriber additions continue and enterprise adoption expands, Starlink is increasingly viewed as SpaceX's long-term earnings powerhouse.
Focus on Integrated AI Infrastructure
SpaceX is aiming to evolve into a vertically integrated artificial intelligence (AI) infrastructure company by combining advanced AI models, large-scale computing capabilities and satellite connectivity under one umbrella. The transformation is likely to unlock a significantly larger addressable market while diversifying the company's revenue base beyond launch services and Starlink. As part of the transition, xAI's flagship chatbot, Grok, will operate under the SpaceXAI brand. The integration is expected to strengthen collaboration between the company's AI software, computing infrastructure and satellite network, creating a differentiated ecosystem that few competitors can match.
The company plans to deploy AI compute satellites as early as 2028, effectively creating space-based data centers capable of delivering large-scale computing capacity. This initiative leverages SpaceX's leadership in satellite deployment while addressing the growing demand for AI computing resources. Alongside its satellite ambitions, SpaceX continues to expand its Colossus data center platform, strengthening its position in AI infrastructure. SpaceX has also entered into a definitive agreement to acquire Anysphere in an all-stock deal valued at $60 billion. The buyout of a startup firm behind the rapidly growing AI coding assistant Cursor is primarily aimed at gaining a firmer footing in the enterprise AI market.
Tesla Remains Technology Leader
While Tesla has faced a more challenging operating environment recently, the company remains much more than an EV manufacturer.
AI Could Drive Next Phase of Growth
Tesla's long-term investment thesis increasingly hinges on AI. Its Full Self-Driving software, Dojo supercomputer and autonomous driving ambitions could eventually transform it into a mobility and AI platform rather than simply an automaker. Successful commercialization of robotaxis would open a sizable new revenue stream and support a higher valuation multiple.
Energy Storage Becoming a Bigger Contributor
Tesla Energy has quietly emerged as one of the company's fastest-growing businesses. Growing demand for Megapack battery storage systems from utilities and commercial customers is helping diversify revenue beyond vehicle sales. As renewable energy adoption accelerates globally, Tesla's energy business could become an increasingly important earnings driver.
Strong Manufacturing Capabilities
Tesla has certain advantages through vertical integration, manufacturing efficiency and software expertise. Its global production footprint and ability to scale operations remain key competitive strengths despite mounting competition across the EV market.
Has SpaceX Moved Up in the Hierarchy?
Both SpaceX and Tesla have execution risk with near-term headwinds. However, SpaceX has become the primary driver of Elon Musk's personal wealth thanks to its rapidly rising market valuation, leadership in commercial space launches and the strong growth trajectory of Starlink. Unlike Tesla, whose core automotive business is navigating slowing industry growth and intensifying competition, SpaceX continues to operate in markets with significant barriers to entry and relatively limited competition.
However, that does not diminish Tesla's long-term investment case. Tesla remains one of the most innovative companies in the world, with significant opportunities in autonomous driving, AI and energy storage. But the growing prominence of SpaceX underscores just how dramatically the center of gravity within Musk's business empire has shifted.
Both SpaceX and Tesla currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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