Featured image: @JimBridenstine/Twitter

An incredibly important event should be held on May 27 for both Americans and all of humanity. But, the launch of astronauts into space by SpaceX is also important for Tesla's stock.

The Demo-2 mission, is a test flight meant to certify the Crew Dragon spacecraft is safe and reliable to transport humans to the International Space Station (ISS). A Falcon 9 rocket will lift off at around 4:32 p.m. EDT. on May 27, carrying NASA Astronauts Robert “Bob” Behnken and Douglas “Doug” Hurley aboard Dragon on a voyage to the orbiting laboratory. The flight is expected to bring back the pride America felt when astronauts launched from the United States. The agency has been launching astronauts to the space station on Russian spacecraft since 2011.

Both companies are created and are managed by a great engineer Elon Musk. Of course, the successful first SpaceX flight with humans on-board will create a positive impact on Tesla’s image.

Sending people into orbit is a great feat, even the Barrons, which only follows Tesla’s events, has turned its attention to this. In their opinion, people should pay attention, even if there is no direct correlation of the stock market.

The launch of SpaceX will bring undeniable benefits to Tesla shareholders, as it will be free advertising. Tesla does not have a traditional advertising budget, like other car companies like General Motors and Ford Motor. GM and Ford spend about 4 billion annually on advertising. That works out to about 25% of total operating expenses for the pair.

Aside from the tangential impact on Tesla stock, there is another reason to watch the launch Wednesday. More and more money is being spent to put things like communications satellites into orbit. The catalyst for the new space race is a fall in prices. Satellites are becoming cheaper and smaller, like many other electronic devices. And SpaceX reduces launch costs by creating reusable rockets. SpaceX is not publicly traded, however, it generates a lot of sales, earning millions for every launch.

"Tesla stock, meanwhile, is on a tear in 2020, up more than 90%, crushing comparable returns of the S&P 500 and Dow Jones Industrial Average over the same span," writes Barrons. "GM and Ford shares, on the other hand, are down about 24% and 36% year to date, respectively. In addition, Tesla trades for about 70 times estimated 2021 earnings. Ford and GM, on a combined basis, trade for less than 10 times."

Source: @elonmusk/Twitter