Elon Musk, Tesla’s CEO and co-founder of SpaceX, recreated a “Knight Rider” moment, showing off his companies’ engineering capabilities with a supercar equipped with cold-gas thrusters developed using SpaceX technology.
Tesla’s share price increased on Friday, largely due to the hype, but while the demonstration impressed, analysts see limited commercial value in the new model.
Mamta Valechha, consumer discretionary analyst at Quilter Cheviot, described it as a “headline-grabbing engineering moment” designed “to generate excitement around the brand”.
Rico Luman, senior sector economist, transport and logistics, at ING, called the presentation “a publicity stunt which emphasises Tesla’s image as an innovative company, which offers brand value”, adding that cars are still about emotion and lifestyle, so the demonstration makes an impression.
Gene Munster, managing partner at Deepwater Asset Management, called the demonstration on X “an engineering flex with no commercial value beyond embarrassing traditional car makers”.
Valechha noted that even Elon Musk had previously played down the Roadster’s likely financial impact. “The commercial value is likely to be strengthening Tesla’s innovation narrative rather than generating meaningful profits.”
Musk said production is expected to start in 2028. Tesla has opened reservations, although the flying Rocket version is available by invitation only. The company has not announced final selling prices.
The Roadster was unveiled in 2017, and a year later Musk suggested that thrusters might allow it to fly. This was followed by repeated delays, as the production was originally promised for 2020. “Credibility and execution risks remain high,” summarised Valechha.
Could flying cars reach a wider market?
The flying features of the Roadster are not approved for public road use, adding another hurdle to any ambitions of a wider roll out of the technology, on top of the high production costs.
Luman said the flying car has been designed as a niche sports vehicle, but “larger scale flying car activity won’t be realistic in the foreseeable future as the same airspace rules apply as for aircraft and certification as aircraft by EASA (in Europe) is then required”.
Whether the Roadster falls within aviation regulations depends on its design, capabilities and intended operation, the European Union Aviation Safety Agency (EASA) told Euronews Business.
The agency said it does not comment on “specific certification applications or activities involving individual manufacturers”.
However, “any vehicle intended to operate as an aircraft would need to meet the applicable aviation safety requirements”, the agency said. These could include pilot qualifications for the driver.
Luman added that, on top of the complex rules that apply, airspace is already rather full, particularly with increasing drone activity.
“Large numbers of uncontrolled flying cars won’t likely be allowed by authorities for safety reasons.”
Valechha also sees limits to how widely the technology could be used.
“Some technologies could filter into other vehicles over time, but flying or thruster-assisted features are unlikely to be economically viable for higher-volume cars in the foreseeable future due to cost, complexity and regulatory hurdles.”
Luman agreed, adding that some space technology could be useful in high-end cars.
“Flying cars in general may be a cheaper alternative for private jets, but not in this concept”.
Pressure to turn technology into profits
Like many big tech companies, Tesla is growing, but faces pressure to turn expensive technology projects into stronger profits.
The company is investing heavily in new technology, while profit growth is failing to keep pace with sales.
Second-quarter revenue rose 26% year on year to $28.24bn (€25.20bn), but net profit attributable to shareholders fell about 5% to $1.11bn (€990m).
First-half capital spending more than doubled to $8.28bn (€7.39bn). Tesla expects capital spending above $25bn (€22.31bn) in 2026, driven by AI and manufacturing investments.
Investors have been pricing the company’s value gradually lower than at the beginning of the year, when Tesla shares traded at $438, whereas on Thursday they cost more than $362, amounting to a 14.6% fall in 2026 so far.
Other analysts also mentioned that Tesla valuation is largely based on its self-driving ambitions, the Optimus model, and SpaceX merger hopes.
Merging SpaceX and Tesla?
The technology in Tesla’s Roadster, borrowed from SpaceX, fuelled expectations that the two companies are going to be merged in the future.
Barclays analyst Dan Levy has suggested an announcement could come before Tesla’s annual shareholder meeting, according to Barron’s. However, a deal remains speculative, with no certainty about whether or when it would happen.
For now, the Roadster’s clearest appeal may be to wealthy enthusiasts.
“This new futuristic model is great for fans and lovers of gadgets who have the ability to spend the money on it. And I’m sure there are quite some around,” added Luman.