Musk’s proposed SpaceX thruster package and past flying-car claims have raised expectations for the event.
- The outdoor demonstration was postponed from Oct.1 to Oct.15 because of severe weather forecasts and high winds.
- Nearly nine years after its unveiling, the Roadster remains in design development.
- The Roadster unveiling comes less than a week before Tesla reports its quarterly earnings on Oct.21.
Shares of Tesla, Inc. (TSLA) slipped 2% overnight heading into Thursday’s ahead of the Roadster event, even as CEO Elon Musk raised expectations for a demo nearly nine years after the electric sports car’s original unveiling.
TSLA stock fell 2% to close at $367.16 on Wednesday, leaving shares down 4% for the week and on track for their worst weekly performance in nearly three months.
Musk's roadster hype also comes amid a hotter-than-expected inflation report, which revived fears of Fed rate hikes and briefly sent the 10-year Treasury yield to about 5.32%. Nasdaq also suffered its worst session in nearly three months.
On the other hand, Tesla changed hands on lighter volume, with about 31 million shares traded against an average of 38.56 million. A separate Barclays report on a potential merger with SpaceX has also added to the pressure.
Tesla also trades at about 187 times its expected earnings, making it the most expensive “Magnificent Seven” stock.
Musk Raises Stakes For Roadster’s Big Night
“The new Tesla Roadster is a candidate for greatest product demo of all time,” Musk said on X. Tesla said that the event would stream live Thursday at 7:55 p.m. Central time. Musk hyped up the event by saying: “Let’s just say that this demo will be a BANGER, probably metaphorically, though some chance literally”
Musk added another tease to the company’s announcement on Wednesday, saying: “Timing is everything.”
The demo was originally scheduled for Oct.1 before severe weather forecasts forced a two-week postponement. Tesla said it had been monitoring conditions with local meteorologists and that the event could only be held outdoors. Musk later identified the obstacle: “Due to high winds, the new Roadster demo is postponed by 2 weeks.”
Flying-Car Claims Behind Roadster Hype
Musk has spent years teasing a Roadster that could do more than drive. In 2017, he floated the possibility of a special upgrade package that could let the car make short flying hops.
In 2018, he outlined a proposed SpaceX option package with about 10 small rocket thrusters integrated into the vehicle. He said the hardware would improve acceleration, top speed, braking and cornering, adding: “Maybe they will even allow a Tesla to fly …”
Musk has described a compressed-air system whose pressure vessel would replace the rear seats, turning the Roadster from a four-seat configuration into a two-seater. In 2021, he reiterated that the Roadster would have thrusters.
By 2024, he said: “The new Tesla Roadster can fly.” He also said Tesla had radically increased the design goals and declared there would never be another car like it, “if you could even call it a car.”
Is Tesla Taking A Cue From ‘Back To The Future’?
Musk’s “Timing is everything” post also hints at a possible movie reference. Written on a 24-hour clock, 7:55 p.m. becomes 19:55, echoing 1955, the year Marty McFly travels to in the original Back to the Future.
The Roadster already has a connection to the franchise through his earlier posts. In 2019, Musk responded to an animation featuring a flying DeLorean by saying: “The new Roadster will actually do something like this.” Later that year, responding to Roadster artwork inspired by the film, he said: “SpaceX thruster package will be subtle. Hidden behind license plate.”
Tesla Roadster Production Still In Focus
Tesla first revealed the next-generation Roadster in November 2017 as a surprise addition to its Semi presentation. Production was initially targeted for 2020, but repeated delays have stretched the wait to nearly nine years since that unveiling.
Beyond the spectacle, investors and reservation holders will be watching for a clearer path to manufacturing. Tesla’s second-quarter manufacturing update still listed the Roadster in “Design development,” with its manufacturing location undetermined.
The event also comes less than a week before Tesla’s third-quarter results, which is scheduled after the market closes on Oct 21.
How Do Retail Traders Feel About TSLA?
On Stocktwits, retail sentiment for TSLA slipped to ‘bearish’ from ‘neutral’ levels a week ago amid a 75% jump in 24-hour message volumes.
Some traders questioned whether the Roadster event could lift Tesla shares. One user said, “musk trying to pump Tesla lol,” adding that they doubted it would help the stock this week. Another user questioned the car’s commercial appeal, pointing to the years since its original unveiling and expressing skepticism about demand.
Traders also spoke about Barclays’ report, which said that the merger announcement could come before Tesla’s annual shareholder meeting, which it said must take place by Dec.6. An announcement separate from the meeting was another possibility, with Barclays expecting one within six to 12 months under that scenario. The firm identified SpaceX buying Tesla in an all-stock deal as the most likely structure, with Tesla shareholders receiving SpaceX shares.
One user questioned the potential exchange terms, asking, “how would Tesla shareholders not lose money in that transaction?” Another user said: “no matter how the deal is structured you’re going to be the loser. It’s certainly not going to be Elon.”
So far this year, Tesla's stock has lagged its "Magnificent Seven" peers, making it the group's worst performer, down about 18%.
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