Key Points
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Tesla has a vision to evolve beyond electric vehicles and pursue artificial intelligence (AI) in robotics and autonomous systems.
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SpaceX has built a diversified business model across rocket launches, internet connectivity, and AI models.
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Both companies could become multibaggers by next decade.
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Elon Musk isn’t particularly known for building ordinary businesses. Whether he’s developing electric vehicles (EVs), launching reusable rockets, or creating artificial intelligence (AI) models, the billionaire entrepreneur has a knack for opportunities that challenge conventional thinking.
Today, two of his most prominent companies, Tesla (NASDAQ: TSLA) and Space Exploration Technologies (NASDAQ: SPCX), are undergoing similar transformations. Tesla wants to evolve beyond EVs into an AI-powered transportation and robotics company. Meanwhile, SpaceX is moving beyond aerospace into satellite telecommunications, AI infrastructure, and software.
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In many ways, Musk has a similar playbook for both companies: transform hardware-centric businesses into technology-enabled services platforms. But if I could buy only one of these Elon Musk stocks and hold it through 2030, which would I choose?
Despite Tesla’s potential, my money would be on SpaceX. Let’s dig into why.
Tesla’s future hinges on unproven AI ambitions
Tesla revolutionized the automotive industry by proving how EVs can be desirable, technologically sophisticated consumer products. However, the competitive landscape has changed considerably in recent years.
Traditional automakers and emerging EV manufacturers are introducing affordable alternatives to Tesla’s vehicles, making it difficult for the company to maintain its competitive advantages. Moreover, EVs still represent a relatively small share of global automobile sales, indicating considerable room for growth but also sensitivity to pricing, infrastructure availability, and government incentives.
Tesla’s latest financial results illustrate some of these challenges. During the third quarter, the company generated $28 billion in revenue, essentially flat from the prior year. Vehicle deliveries declined 2% to 486,532 units, while generally accepted accounting principles (GAAP) net income fell 43% to $787 million.
These figures actually explain why Musk is trying to position Tesla as more of an AI company rather than another automaker. The company’s Robotaxi initiative aims to transform Tesla vehicles into an autonomous transportation platform that generates recurring revenue through ride-hailing services. Meanwhile, the Optimus humanoid robot could eventually automate tasks across factories, warehouses, and other commercial environments.
Indeed, Tesla has made some progress on both of these frontiers. Cybercab is in limited commercial operations while Optimus production has begun at the company’s Fremont facility. Nevertheless, there are important distinctions between launching new technologies and actually scaling them into highly profitable businesses. In reality, autonomous transportation faces regulatory and operational challenges. Similarly, humanoid robotics remains an emerging industry with uncertain adoption rates and unit economics.
SpaceX is already monetizing AI
Although SpaceX is best known for its reusable rockets, the company has quietly built a diversified ecosystem of businesses spanning satellite internet, telecommunications, AI computing, and software.
During Q3, SpaceX generated $14.6 billion in revenue — representing growth of 161% year over year. Its Super Intelligence segment, which encompasses AI infrastructure and software, contributed approximately $7.6 billion in revenue. This business includes SpaceX’s Colossus data centers, which provide capacity to customers developing AI models.
For example, SpaceX has compute services agreements with Anthropic and Alphabet involving access to hundreds of thousands of Nvidia graphics processing units (GPUs). SpaceX is also developing Grok, its proprietary AI chatbot, alongside other software applications.
Meanwhile, the company’s satellite connectivity business generated $5.2 billion in quarterly revenue, growing 69% year over year. Starlink ended September with 13.6 million consumer subscribers, while Starlink Mobile reached 22 million monthly users. These figures underscore how SpaceX is expanding beyond traditional satellite internet into broader telecommunications markets.
Importantly, SpaceX doesn’t need all of these initiatives to succeed simultaneously. Its launch services, Starlink subscriptions, enterprise connectivity, and AI infrastructure businesses provide multiple avenues for growth. That’s a meaningful difference over other companies whose future valuation may depend heavily on a relatively narrow set of unproven technological breakthroughs.
Why I’d choose SpaceX over Tesla for the long term
If Robotaxi becomes a widely adopted transportation platform and Optimus develops into a commercially successful robotics business, Tesla could definitely generate outsized returns. However, investors need to weigh those possibilities against the company’s current financial performance and competitive automotive market.
On the other hand, SpaceX already has several growing businesses that can support its valuation independently. Satellite connectivity already generates consistent operating profits, while the AI infrastructure segment is starting to demonstrate an ability to monetize computing capacity through large enterprise contracts at attractive economics.
Of course, building AI data centers requires enormous capital expenditures (capex), satellite networks are expensive to maintain, and the software business faces intense competition. This is all to say that SpaceX’s ambitious roadmap could pressure free cash flow in the near term.
Nevertheless, I think SpaceX offers more diversification and has a better chance of monetizing AI across enterprise and consumer markets relative to Tesla. While both companies could become substantially more valuable by 2030, if I could own only one, I’d choose SpaceX stock because its existing businesses provide a stronger foundation for future growth while its expanding AI ecosystem creates several additional tailwinds for long-term upside.
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Adam Spatacco has positions in Alphabet, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
