This article first appeared on GuruFocus. Tesla (TSLA, Financials) is facing fresh speculation that it could eventually combine with SpaceX after the rocket company filed to go public. Wedbush analyst Dan Ives said a merger could happen by next year, arguing that Elon Musk may want to bring more of his electric vehicle, space and artificial intelligence businesses under one structure. The idea has...
This article first appeared on GuruFocus. Tesla (TSLA, Financials) is facing fresh speculation that it could eventually combine with SpaceX after the rocket company filed to go public. Wedbush analyst Dan Ives said a merger could happen by next year, arguing that Elon Musk may want to bring more of his electric vehicle, space and artificial intelligence businesses under one structure. The idea has gained attention because Musk leads both Tesla and SpaceX, while his companies are already working together on projects tied to chips and AI infrastructure. Still, traders are not fully convinced. Kalshi users placed 33% odds on a Tesla-SpaceX merger happening before May 2027, down sharply from nearly 77% odds for a deal before April 2027 just days earlier. The speculation comes as Tesla faces stronger competition in China from BYD, Geely and Chery. A SpaceX tie-up could give Tesla a broader technology story, but it would also raise complex governance questions. Musk recently said any intercompany deal would need approval from both boards and would have to balance the interests of Tesla and SpaceX shareholders. For investors, the next catalyst will be SpaceX's IPO process and any formal signal from Tesla or SpaceX on whether a combination is being considered.