Tesla vs SpaceX: What's the Better Growth Stock to Buy Right Now?

Tesla (NASDAQ: TSLA) and Space Exploration Technologies Corp. (NASDAQ: SPCX), often referred to as SpaceX, are two companies that are highly popular with retail investors. A big reason why is that they share the same CEO: Elon Musk.

Musk's grand visions for future growth at his companies have proven attractive to many growth-focused investors. Whether it's investing in robotaxis, robotics, or space travel to Mars, these two companies offer no shortage of enticing growth prospects. If they capitalize on their respective opportunities, their current valuations may prove not only justifiable but even cheap.

Both stocks have valuations well in excess of $1 trillion right now. Which one looks to be the better investment right now?

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Tesla's stock may be down, but its financial results remain strong

Electric vehicle (EV) maker Tesla has been declining in value this year, with its shares down 28% thus far in 2026. While that may be bad news for existing shareholders, it could create a more attractive buying opportunity for investors considering buying the EV stock.

Unlike SpaceX, which isn't profitable, Tesla already has a robust business, having generated around $104 billion in sales over the past four quarters. It's also profitable, with its net income totaling $3.8 billion during that time frame. While it has been struggling of late amid rising competition, it's a positive sign nonetheless that the business can remain a leader in the EV space and still turn billions in profit as competition ramps up. Even with declining margins, Tesla's business has remained firmly in the black.

Perhaps more importantly, its free cash flow remains strong, totaling $5.8 billion over the past four quarters. Free cash is crucial for the business to continually invest in its future growth, whether in robotaxis or the development of humanoid robots, which Tesla hopes to start selling to consumers as early as next year.

Strong financials, exciting growth prospects, and a lower valuation are among the key reasons Tesla's stock could be a great buy right now.

SpaceX's valuation is massive, but so too is its growth potential

SpaceX investors know that it'll take time for the rocket company to achieve its goals; they are, after all, ambitious ones, such as sending people to Mars and putting data centers into space. If the company can achieve them, then the stock's $1.5 trillion valuation may end up looking incredibly modest years from now.

Revolutionizing space travel and advancing the broader tech sector are massive growth opportunities. And as with many growth stocks, investors will need to accept some risk along the way. SpaceX, however, isn't starting from zero. It's not a pre-revenue business. Last year, it generated nearly $19 billion in revenue, up 80% over the past two years. SpaceX has a fairly large business that could get much bigger in the future. And its connectivity segment, which includes Starlink, its satellite internet service, is already profitable.

SpaceX's valuation reflects investors' trust in Musk and his ability to do for SpaceX what he has done for Tesla: achieve massive growth. While SpaceX has gone public at a far higher valuation than Tesla did, its ambitions are also far larger. Thus, its high valuation may not matter too much in the end, given the mammoth opportunities ahead for the business.

The space stock is down significantly from its IPO price, and for investors bullish on Musk's long-term vision, SpaceX could be a compelling buy right now.

Which stock is the better buy today?

Both of these stocks are expensive and contain risk. That's a given. But where I draw the line is valuing a money-losing business at more than $1 trillion. Tesla, for all its challenges and headwinds, is at least profitable. It's already built an established brand in the EV market and has achieved success there.

SpaceX, however, still has a lot to prove. Starlink is doing well, but SpaceX's valuation is largely driven by its ambitions in space travel. Musk has a ton of work to do there, and his success with Tesla doesn't guarantee a similar result with SpaceX.

While it may be tempting to get wrapped up in an attractive growth story and fall in love with a stock's growth prospects, investors should always be grounded in hard facts and numbers. SpaceX falls significantly short. Although Tesla may not be a risk-free stock, it's the better growth stock of the two to buy right now.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.