Elon Musk’s bromance with President Trump might be back on for Christmas in the form of a land swap deal for the tech tycoon’s space exploration business SpaceX (PC.SPXEX)
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SpaceX Eyes Expansion
According to a report in the New York Times, the Trump administration is reportedly considering giving nearly 800 acres of land in a federal wildlife refuge in Texas to SpaceX, the rocket and satellite maker run by Musk.
The Times, citing documents it had reviewed said that, SpaceX, in return, would give the government around 692 acres of property it has purchased elsewhere in Cameron County, Texas some of which is about 20 miles from the refuge.
SpaceX will use the land to expand its rocket launch and production site in Cameron County.
Under the proposed deal, the U.S. Fish and Wildlife Service would give SpaceX the land, which is currently part of the Lower Rio Grande Valley National Wildlife Refuge.
The report said it is unclear whether the deal would require SpaceX to take steps to protect wildlife, habitats, or any cultural resources linked to the land it receives from the government.
Good Timing for IPO
This deal is not unique. The report said that Republicans and Democrats have previously exchanged land in wildlife refuges with private companies. Last year, the Biden administration gave utility companies nearly 20 acres of public land in the Upper Mississippi River National Wildlife Refuge.
However, it is interesting given SpaceX’s plans to IPO, potentially as early as next year, as it continues its mission to land on Mars, launch more satellites and even build AI data centers in space.
It is also notable given the relationship between Elon Musk and President Trump. It looked like a beneficial and friendly one at the start of the year when Musk’s support for Trump in his re-election bid ended in him getting a job in his administration.
However, the pair later fell out in acrimonious circumstances over Trump’s spending plans and lack of support for EVs.
Is TSLA a Good Stock to Buy Now?
As SpaceX is still a private company let’s look at EV maker Tesla (TSLA) where Elon Musk is chief executive. On TipRanks, TSLA has a Hold consensus based on 11 Buy,12 Hold and 9 Sell ratings. Its highest price target is $600. TSLA stock’s consensus price target is $385.34, implying a 21.15% downside.
