Elon Musk‘s net worth rebounded last week and is slowly nearing the $1 trillion mark as Tesla (NASDAQ:TSLA) and Space Exploration Technologies Corp. (NASDAQ:SPCX) shares rebound from their August lows and as analysts remain optimistic about the two companies. 

Musk, the world’s richest person, added over $22 billion in wealth on Friday, bringing his net worth to over $851 billion. This means that he may regain his trillionaire status if the two companies continue rising. 

SpaceX and Tesla Stocks Have Rebounded This Month

SpaceX stock ended the week at $136.9, up by 30% from its lowest level this year. Tesla, on the other hand, has soared by 22% from the July low and is about to complete filling the gap that formed after releasing its earnings in July. 

Analysts covering the two companies have expressed optimism that their shares have more room to run. Benzinga data shows that the average SpaceX stock target is $228, up by 66.5% from the current level. UBS has a target of $210, while Bernstein sees the stock rising to $248. 

The same is happening with Tesla, which has an average consensus of $406, a 12% increase from the current level. Stefel’s Stephen Gengaro has a target of $491, while RBC’s Tom Narayan sees it rising to $500. 

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Tesla and SpaceX are Doing Well, But Cost Concerns Remain

The most recent results showed that the two companies were doing well, with the main challenge being their elevated costs. Tesla’s revenue jumped by 26% in the second quarter to $28.23 billion as its vehicle deliveries soared. It delivered 480,126 vehicles after making 451,758 vehicles. 

The challenge, however, is that its AI investments drove its free cash flow to the negative zone. It experienced a $1.09 billion outflow during the quarter after recording a $1.4 billion inflow in the previous quarter. Elon Musk and the team expect that its FCF will be negative for the year.

SpaceX also delivered strong results, with revenue rising 92% to $7.8 billion. This growth spanned all three divisions: the connectivity division brought in over $4.2 billion, while the AI and space segments generated $2.5 billion and $962 million, respectively.

The company’s capital expenditure is also soaring, hitting $18.3 billion, up sharply from $2.8 billion in the same period last year. This growth will likely continue as Tesla and SpaceX work on the Terafab project in Texas. 

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