SpaceX posts Starship booster feat that’s so nutty, it doesn’t even look real

SpaceX's Starship Super Heavy booster successfully completed Flight Test 11, demonstrating reusability and setting aggressive future targets, reinforcing its leadership in spaceflight. Concurrently, proxy firm ISS advised against Elon Musk's proposed $1 trillion Tesla pay package, citing its 'astronomical' size and potential for shareholder dilution, despite Tesla's rationale for executive retention. Separately, Musk is expanding his Bay Area presence with Neuralink's new large lease and xAI's office search, signaling growth in his AI and biotech ventures. This occurs as the removal of EV subsidies validates Musk's long-held view, impacting legacy automakers like GM, Ford, and Stellantis who are now scaling back EV plans, while Tesla maintains robust performance.

Analysis

The removal of the $7,500 EV Tax Credit has significantly impacted legacy automakers, validating Elon Musk's long-held view that subsidies primarily aided competitors. General Motors anticipates a $1.6 billion charge from EV investments, while Ford expects EV demand to halve, and Stellantis is retracting its 2030 all-EV plan for Europe and US sales targets. This contrasts sharply with Tesla's reported strongest quarter in company history, achieving nearly half a million deliveries, despite its US market share declining from 79% in 2020 to 49% in 2024.

Concurrently, Tesla faces governance scrutiny as proxy firm ISS advises against Elon Musk's proposed $1 trillion pay package, citing its "astronomical" size and potential for significant shareholder dilution. ISS warns the package could reduce the board's future compensation adjustment capabilities, despite Tesla's argument that it is crucial for retaining Musk and driving shareholder value through growth-based tranches.

Beyond Tesla, Musk's other ventures show aggressive expansion and technological progress. SpaceX's Starship Super Heavy booster successfully completed Flight Test 11, achieving full mission goals and marking its second reflight, advancing towards full reusability and preparing for the V3 vehicle. Simultaneously, Neuralink is expanding its Bay Area presence with a new 144,000 sq ft lease, demonstrating progress in human trials with successful patient interaction, and targeting "Blindsight" for human trials next year, alongside xAI's search for a larger office.

Key Decisions for Investors

• Investors should closely monitor the outcome of Elon Musk's $1 trillion Tesla pay package vote, as its approval or rejection could significantly impact shareholder sentiment and potential dilution.
• Reassess Tesla's competitive moat in the EV market given the struggles of legacy automakers post-subsidy removal, considering its robust delivery performance and strategic focus on autonomy and AI.
• Evaluate positions in legacy automakers such as GM, Ford, and Stellantis, given their reported financial charges and scaled-back EV ambitions in a less subsidized market.
• Consider the broader implications of Musk's expanding presence and aggressive targets in private ventures like SpaceX, Neuralink, and xAI, which may influence his long-term focus and capital allocation.