alt Hacker NewsI can see them as a shared fate for a couple reasons:
* the obvious one is Elon - both valuations are largely propped up on belief in Elon. Whenever he falters, his companies that are speculation-based (all of them) will take a hit
* Elon pitched SpaceX as an AI company. Tesla needs better AI because they keep sending signals that they won't be at L5 anytime soon, and Tesla's valuation is still very speculative[0]at least in part due to the race to L5 autonomy. i.e. Tesla will need better AI , and SpaceX is that natural fit (on paper, at least, I'm not sure SpaceX has any useful AI for any use case, let alone self-driving).
[0] Tesla's PE ratio of is still 30x massively out of line with it's actual earnings and ~30x the American automotive industry.
> Tesla needs better AI because they keep sending signals that they won't be at L5 anytime soon.
China now insists that self-driving cars be "SAE level 3.5" if they let the driver take their hands off the wheel. "If the driver fails to respond within the specified timeframe or is physically unable to take control (e.g., due to unconsciousness), the system must automatically initiate a Minimal Risk Manoeuvre (MRM). This includes the ability to change lanes and park the vehicle safely in a location that does not obstruct traffic, while minimising risks to passengers and other road users."[1] That takes effect in China July 1, 2027. Mercedes Drive Pilot is close to this level. Tesla, not even close.
That's probably the right answer in the assisted self driving space.
[1] https://www.electrive.com/2026/02/26/china-introduces-new-re...