NEW YORK, August 7, 2026, 11:03 EDT — U.S. regular trading begins.
- Tesla shares rose 3.5% to $330.63, while the tech-focused QQQ advanced 0.8%.
- The starting budget for Terafab is $16.8 billion, which accounts for 38.6% of Tesla’s cash and investments at the end of the quarter. Tesla’s ownership stake has not been made public.
- The median analyst price target for FactSet is $403, which is roughly 22% higher than its current price.
Tesla, Inc. NASDAQ:TSLA advanced 3.5% in early U.S. trading on Friday. The stock hit $330.63 at 11:02 EDT. The Invesco QQQ Trust NASDAQ:QQQ was up 0.8%.
Investors evaluated Tesla’s Terafab collaboration with Space Exploration Technologies Corp. NASDAQ:SPCX, after the firms announced an initial $16.8 billion investment on Thursday.
Supply security drives the long-term argument. Financing visibility is the immediate concern. The budget for the first phase amounts to 38.6% of Tesla’s cash and investments as of June, and is 3.6 times its quarterly operating cash flow.
Real-time stock comparison, as of 10:48 EDT
| Company | Price | Day move | Market value | Trailing P/E |
|---|---|---|---|---|
| Tesla, Inc. NASDAQ:TSLA | $330.60 | up 3.46% | $1.170 trillion | 306x |
| General Motors Company NYSE:GM | $86.83 | down 0.13% | $79.0 billion | 38.8x |
| Ford Motor Company NYSE:F | $13.92 | rises 0.94% | $55.5 billion | N/M |
| Rivian Automotive, Inc. NASDAQ:RIVN | $15.91 | advances 3.45% | $21.1 billion | N/M |
Tesla’s market capitalisation is nearly 15 times that of General Motors. It stands at around 21 times Ford’s market value, and 56 times Rivian’s. This valuation premium places more urgency on delivering AI-related returns.
Terafab is set to cover 100 million square feet in Grimes County, Texas, where it will manufacture, assemble, and test advanced logic and memory semiconductors. Intel Corporation NASDAQ:INTC has previously joined the initiative. Elon Musk stated the facility is “bringing ‘cutting-edge manufacturing to America.’” Reuters
Comparing Terafab with Tesla’s Q2 results
| Benchmark | Amount | Starting Terafab budget as compared to benchmark |
|---|---|---|
| Terafab initial phase joint venture | $16.800 billion | 100% |
| Tesla liquid assets and near-term investments | $43.524 billion | 38.6% |
| Tesla Q2 net cash provided by operations | $4.697 billion | 3.6x |
| Tesla Q2 investment in fixed assets | $5.789 billion | 2.9x |
| Tesla Q2 earnings from operations | $0.398 billion | 42.2x |
| Tesla minimum planned capital outlay for 2026 | More than $25 billion | 67.2% of the minimum |
The ratios do not presuppose that Tesla will finance the entire project. The announcement did not specify how the funding would be split between Tesla and SpaceX. In its most recent quarterly filing, Tesla also did not disclose a separate commitment to Terafab.
Tesla’s second quarter results were mixed, highlighting a disclosure gap. Revenue surpassed the average company forecast by 2.4%, but operating income missed estimates by 73.5%. Adjusted earnings came in 40% short of forecasts.
Q2 results compared to sell-side consensus gathered by Tesla
| Metric | Q2 actual | Consensus | Difference |
|---|---|---|---|
| Revenue | $28.236 billion | $27.584 billion | Up 2.4% |
| Gross margin | 16.8% | 19.5% | Down 2.7 points |
| Operating income | $398 million | $1.503 billion | Declined 73.5% |
| Adjusted EPS | $0.33 | $0.55 | Down 40.0% |
| Capital spending | $5.789 billion | $6.698 billion | Down 13.6% |
| Free cash flow | -$1.092 billion | -$3.254 billion | $2.162 billion improvement |
The quarter was marked by a distinct divergence. Deliveries at an all-time high drove revenue upwards, while expenses counteracted the benefits of operating leverage. Tesla has raised its capital expenditure forecast for 2026 to over $25 billion, with AI infrastructure cited as a key factor.
The financial relationship between Tesla and SpaceX is growing increasingly significant. In the second quarter, Tesla reported $318 million in revenue from Megapack sales to SpaceX. Tesla also bought $2 billion worth of SpaceX stock in the first six months.
Analysts maintain a positive view, but projections differ widely. According to FactSet, there are 22 Buy or Overweight ratings, 20 Hold recommendations, and six negative ratings. The median price target stands at $403, while the complete range spans from $24.86 to $600.
Analyst ratings
| Recommendation | Current count | One month ago |
|---|---|---|
| Buy | 16 | 19 |
| Overweight | 6 | 6 |
| Hold | 20 | 22 |
| Underweight | 1 | 1 |
| Sell | 5 | 6 |
| Consensus | Overweight | Overweight |
Tesla’s gains on Friday left the stock roughly 6.2% higher than its closing price on July 31. However, shares were still down nearly 12% compared to where they finished before earnings on July 22.
Europe presents an additional possible catalyst. Dutch authorities have authorised Tesla’s supervised Full Self-Driving system but have not released comprehensive safety data. An EU-wide vote may take place in October.
Risks: Potential Terafab delays, higher costs, or low manufacturing yields may further increase cash usage. Regulatory obstacles for FSD and governance issues involving related parties could weigh on Tesla’s valuation premium.
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