CNN reported that after SpaceX went public, attention has turned to whether Elon Musk could seek a merger between SpaceX and Tesla. The question may draw more scrutiny this week as Tesla is set to release earnings after the U.S. stock market closes on Wednesday, followed by an investor call where Musk could offer clues about the future relationship between the two companies. JPMorgan analyst Rajat Gupta said a merger could make strategic sense by bringing the companies’ vision, engineering management and AI operations under one roof. He also noted that Tesla and SpaceX already formed a joint venture, Terafab, in March and are building a chip factory in Austin, Texas. Separately, technology analyst Dan Ives said he sees the odds of a merger in 2027 at more than 80%, while stressing that this reflects his own view. The report added that a combined company could be valued at about $3 trillion, roughly on par with Microsoft, though any deal would still face regulatory complications tied to Tesla’s China business and SpaceX’s close links to the U.S. government.
After SpaceX went public, the market has begun watching whether Elon Musk might push for a merger between SpaceX and Tesla, according to CNN.
Tesla is scheduled to report earnings after the U.S. stock market closes on Wednesday and will then hold an investor call. Musk may offer more clues there about the future relationship between the two companies.
Analysts outline the case for a deal
JPMorgan analyst Rajat Gupta said a merger could make sense from a strategic standpoint, allowing the two companies to align their vision, engineering management and AI businesses. Tesla and SpaceX already set up a joint venture, Terafab, in March this year and are building a chip factory in Austin, Texas.
Technology analyst Dan Ives said he believes the chance of a Tesla-SpaceX merger in 2027 is greater than 80%, while noting that this is his personal view.
Valuation upside and regulatory constraints
The report said a merged company could carry a valuation of about $3 trillion, putting it on a scale comparable to Microsoft. Such a deal could also increase Musk’s control over Tesla. He currently holds more than 80% of the voting power at SpaceX, while his stake in Tesla is about 20%.
Still, a potential transaction would face regulatory obstacles. Gupta said Tesla has a major factory presence in China and derives a significant share of its sales and profit there, while SpaceX has close ties to the U.S. government. The report also noted that both companies’ valuations depend heavily on market confidence in Musk, and that a merger could concentrate that risk even more.
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