Tesla protests, saving astronauts, xAI, DOGE — Should you invest in Elon Musk?

Tesla backlash

Tesla’s self-driving technology has been a cornerstone of its value proposition, but recent controversies are raising red flags for investors. The company has long insisted that camera-based vision is sufficient for autonomous driving, rejecting the use of LiDAR (Light Detection and Ranging) sensors. However, recent experiments have shown significant weaknesses in Tesla’s approach.

A test conducted by CleanTechnica on March 17, 2025, demonstrated how Tesla’s camera-based Full Self-Driving (FSD) system struggled in low-visibility conditions such as rain, fog and smoke. Meanwhile, LiDAR excels in these conditions.

On top of that, a massive recall of Cybertrucks was issued after reports that parts of the trim, including the truck’s stainless steel siding, can come loose or fall off while driving, further fuelling concerns about quality control and reliability.

Financially, this could impact Tesla’s market position. A 2024 survey by J.D. Power found that 74% of EV buyers consider advanced driver assistance systems a key factor in their purchasing decisions. If Tesla’s FSD falls behind competitors that adopt LiDAR, the company could lose a significant share of the growing autonomous vehicle market.

Meanwhile, shares have already shown volatility. Since December, Tesla has fallen 48%, making it one of the worst-performing large-cap stocks of the year.

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SpaceX: A dominant, but private, space player

While Tesla faces challenges, SpaceX is thriving. The company recently completed another successful astronaut mission, reinforcing its reputation as the global leader in commercial spaceflight. More importantly, SpaceX’s Starlink satellite network is expanding, providing high-speed internet to remote locations worldwide.

That said, not everything is smooth sailing. Recently, a Starship test flight ended in an explosion during re-entry, highlighting the risks still inherent in the company’s ambitious development timeline.

Starlink’s growth has been staggering. Despite this success, SpaceX remains private, leaving retail investors unable to buy shares directly. However, there are indirect ways to invest. A BNN Bloomberg report revealed SpaceX’s inclusion in a little-known aerospace exchange-traded fund (ETF) triggered a surge in investor interest. The Procure Space ETF (UFO), which includes holdings tied to SpaceX’s business ecosystem, saw inflows increase by 28% in one week following the news.

For Canadian investors, ETFs provide a way to gain exposure to aerospace and satellite technology. Those interested in the sector should explore the best ETFs for Canadian investors that include companies linked to space innovation.

xAI and the Private Equity Dilemma

Musk’s AI company, xAI, recently made headlines for its chatbot, Grok, a direct competition to OpenAI’s ChatGPT. The company aims to revolutionize AI by focusing on truth-seeking algorithms rather than politically biased outputs. However, like SpaceX, xAI is private.

Some investors are trying to gain exposure through private equity platforms. Private market investing has surged, with firms such as Wealthsimple Private Markets offering access to high-growth startups for accredited investors. Wealthsimple allows Canadians to invest in private equity funds, though the minimum investment amounts are often high, and liquidity is limited.

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Should you invest in Musk’s ventures?

Musk’s companies are undeniably exciting, but not all are easily accessible for investors. So if you’re considering investing in Musk-led ventures, here are the key takeaways to consider:

• Tesla is still a strong EV brand, but its self-driving approach is facing scrutiny. Investors should watch regulatory developments and competitive advancements in LiDAR.
• SpaceX dominates the space industry, but retail investors need to look at ETFs that include related companies.
• xAI is a potential AI disruptor, but remains private. Investors interested in AI may need to look at public alternatives like NVIDIA, or explore private market options through Wealthsimple.

Final thoughts: Is hype enough?

Elon Musk’s ventures are filled with promise, but investors must separate excitement from strategy. Investing in disruptive industries can be appealing, but understanding risk, access and market conditions is essential. Whether Tesla, SpaceX-related ETFs, or AI investments catch your interest, always diversify and invest wisely.

Wondering how to buy stocks in Canada? Start by choosing from one of the best investment apps, many of which are offered by Canada’s discount brokerages. Whether you’re building a portfolio from scratch or just looking to diversify, the best ETFs in Canada can be a simple, cost-effective way to get started.

Sources

1. CleanTechnica: Lidar vs. Cameras = A Giant Fail For Tesla

2. J.D. Power: Vehicle Alerts Cause Most Complaints About Advanced Driver Assistance Systems, J.D. Power Finds

3. BNN Bloomberg: SpaceX Addition Spurs Flood of New Cash Into Little-Known ETF