Investing in Elon Musk Stocks: Opportunities and Risks
Leighton Cole | March 26, 2025
Elon Musk is one of the most influential figures in modern business, shaping industries from electric vehicles to artificial intelligence. His companies, whether public or private, tend to attract investor interest and media attention, creating both opportunities and risks. For those looking to invest in Musk-related stocks in the USA, understanding the fundamentals behind the hype is essential.
Tesla (TSLA) is the most well-known Musk-led company and a dominant force in the electric vehicle market. Despite increasing competition, Tesla continues to innovate with self-driving technology, energy storage, and robotics. The stock remains volatile, but long-term investors see potential in Tesla’s ability to scale production and expand globally. However, its high valuation means that expectations are always sky-high, making it vulnerable to short-term market swings.
While SpaceX remains private, its satellite internet division, Starlink, has the potential to disrupt global telecommunications. If SpaceX eventually goes public, it could create new opportunities for investors. In the meantime, companies involved in satellite communications and aerospace, such as Iridium Communications (IRDM), could indirectly benefit from SpaceX’s expansion.
Musk’s influence in artificial intelligence is growing through his startup xAI, which aims to compete with OpenAI. While xAI itself is not publicly traded, Tesla’s AI-powered self-driving technology and humanoid robotics efforts make it an indirect play on this trend. Chipmakers like Nvidia (NVDA), which supply AI processors, also stand to benefit from Tesla’s deep investment in machine learning and automation.
Musk’s acquisition of Twitter, now rebranded as X, has introduced another layer of market speculation. While X is not publicly traded, its push into financial transactions and content monetization could impact fintech and social media stocks. If Musk successfully integrates payments and banking features, it could challenge existing platforms like PayPal (PYPL) and Block (SQ), creating potential shifts in the digital finance sector.
Beyond technology, Musk’s ventures extend into infrastructure and biotech. The Boring Company, which focuses on underground transportation, and Neuralink, which is developing brain-machine interfaces, are still in early stages but could shape the future of their respective industries. Although they are not yet publicly investable, companies involved in tunneling, urban mobility, and neuroscience may see long-term opportunities as these technologies develop.
Investing in Musk-related stocks requires balancing excitement with caution. While his companies are known for innovation and rapid growth, they also come with regulatory risks, competition, and market volatility. Investors should focus on the underlying business fundamentals rather than short-term hype, ensuring that their portfolios align with their risk tolerance and long-term goals.
For those willing to ride the ups and downs, Musk-affiliated stocks offer exposure to some of the most transformative sectors in the market. Whether it’s electric vehicles, AI, space exploration, or fintech, these investments have the potential to reshape industries—just as Musk himself has done time and time again.