Tesla (TSLA.US) to Host Roadster Launch Event This Friday: Elon Musk Promises "Greatest Product Demo Ever," Debut of the Nine-Year-Teased "Flying Sports Car"

According to Zhicheng Finance APP, Tesla (TSLA.US) shares declined ahead of the Roadster launch event, as CEO Elon Musk is setting high expectations for the electric sports car’s first real-world demonstration in nearly nine years. Tesla closed down 2% on Wednesday and is down 4% for the week, heading towards its worst weekly performance in almost three months.

The launch event is scheduled to be broadcast live at 7:55 p.m. Central Time in the U.S. on Thursday (8:55 a.m. Beijing time Friday). Musk wrote on X: "The new Tesla Roadster qualifies as the best product demo of all time." He also teased: "Let’s put it this way, this demo is going to be a real banger—most likely figuratively, but maybe even literally." On Wednesday, he added another intriguing teaser: "Timing is everything."

An Event Facing Macroeconomic Headwinds

Musk’s Roadster promotion has coincided with a hotter-than-expected inflation report—rekindling fears of Federal Reserve rate hikes. The 10-year U.S. Treasury yield briefly touched around 5.32%, and the Nasdaq recorded its worst single-day performance in nearly three months. A Barclays report regarding a potential Tesla and SpaceX merger also added pressure to the stock price.

At present, Tesla’s price-to-earnings (P/E) ratio, based on expected earnings, is about 187 times, making it the most expensive among the “Magnificent Seven” stocks. So far this year, Tesla has been the worst performer among the group, falling around 18% cumulatively.

A Demonstration Nine Years in the Making

This outdoor demonstration was originally scheduled for October 1, but was delayed by two weeks due to severe weather forecasts and high winds. Tesla stated it had been monitoring weather conditions with local meteorologists and that the event could only be held outdoors; Musk explained at the time: "Due to high winds, the new Roadster demo is delayed by two weeks."

Musk has long hinted that this Roadster can do far more than just "drive." In 2017, he mentioned a special upgrade package capable of allowing the car to achieve short-distance flight hops; in 2018, he described a SpaceX option package that included about ten small rocket thrusters, claimed these components would improve acceleration, top speed, braking, and cornering—"maybe they’ll even let a Tesla fly." He also once described a compressed air system—where a pressure vessel would replace the rear seats and turn the Roadster from a four-seater into a two-seater. In 2021, he reiterated the Roadster would be equipped with thrusters; by 2024, he directly said, "The new Tesla Roadster can fly," further stating that Tesla had dramatically raised the design targets: "Even if you call it a car," there will never again be a second one like it.

The "Timing is everything" post contains an Easter egg: in 24-hour format, 7:55 p.m. is 19:55—mirroring the year 1955, the exact year Marty McFly travels to in "Back to the Future." There’s already precedent for the Roadster’s connection to the film: In 2019, Musk responded to an animated flight version of the DeLorean by saying, "The new Roadster will actually do something like this," and that same year said, "The SpaceX thruster package will be subtle, hidden behind the license plate."

The next-generation Roadster was first unveiled as a surprise at Tesla’s Semi launch event in November 2017, with mass production originally planned for 2020. After repeated delays, nearly nine years will have passed from its unveiling to this demo event.

What Investors Care About

Beyond the demonstration, investors and preorder customers are hoping to see a clear path to mass production. In Tesla’s Q2 manufacturing progress report, the Roadster is still listed in the "design and development" phase, with its production location yet to be determined. Less than a week after the event, Tesla will release its Q3 earnings after the market closes on October 21.

On Stocktwits, retail investor sentiment towards Tesla was “neutral” a week ago but has now shifted to “bearish,” with a 75% surge in message volume over 24 hours. Some users questioned whether the event could boost the stock: "Musk is trying to pump Tesla, haha." Others doubted the commercial appeal of the car, pointing to the many years since its debut and questioning the demand.

Traders also hotly discussed the Barclays report: The bank believes a merger announcement could be revealed before Tesla’s annual shareholder meeting (which must be held no later than December 6) or possibly separately—the latter scenario Barclays expects could bring news within 6 to 12 months. The bank thinks the most likely structure is for SpaceX to acquire Tesla in an all-stock deal, with Tesla shareholders swapping shares for SpaceX stock. Some users asked about the swap terms: "How could Tesla shareholders possibly not lose money in that deal?" Another commented: "No matter how the deal is structured, the loser will be you—certainly not Musk."