Gary Black, managing partner of The Future Fund, argues that an all-stock Tesla–SpaceX deal at about $420 per Tesla share, roughly 10% above the current price, would add little value. Tesla trades at 191.6x forward earnings, well above its three-year average of 135.1x and above SpaceX's multiple, so the combined company would likely be valued at SpaceX's lower level. Tesla's normalized EPS fell from $3.12 in fiscal 2023 to $1.66 in fiscal 2025, with analysts expecting $2.17 in fiscal 2027. Musk said special committees at both companies are studying the idea and that he thinks it would be a good idea, but no terms have been agreed.
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TSLASpaceXmergers and acquisitionsvaluationElon Musk
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Related tickers and likely impact
TSLA
▼ Likely negativeTesla, Inc.
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.4T |
| Close on 10/20/2026 | 373.77 |
| Change that session | +1.55% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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