According to RBC Capital Markets, SpaceX (NASDAQ:SPCX) could acquire Tesla (NASDAQ:TSLA) for $480 per share, creating a combined company worth $3.74 trillion. Tesla shareholders would hold just 48% of the merged business, down from 54% in the bank's July estimate.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
TSLASpaceXmergers and acquisitionsElon Musk
Open a keyword to see other news on the same topic.
Related tickers and likely impact
TSLA
▲ Likely positiveTesla, Inc.
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.4T |
| Close on 10/16/2026 | 354.67 |
| Change that session | -2.14% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Tesla-SpaceX Merger Mania Strikes Wall Street Ahead of Earnings
- Why a Tesla–SpaceX merger might actually not be 'so easy'
According to Tom Narayan, lead equity analyst for global autos at RBC Capital Markets, a SpaceX acquisition of Tesla would be complicated and most likely an all-stock deal. Elon Musk controls 85% of the voting power at SpaceX but only about 20% at Tesla, so the deal would need a substantial premium. RBC's price target of $480 per Tesla share reflects Tesla's intrinsic value plus a premium, which at SpaceX's current share price would imply a 50/50 split of the combined company. Narayan said some SpaceX holders may not like this, since market caps suggest 60–70% of the combined value could come from SpaceX, though both shareholder bases want the deal at the right price.
- Tesla–SpaceX merger: What is the Roadster's bigger strategic play?
In the Loop host Ejaaz Ahamadeen argues that the technology behind the “flying” Tesla Roadster shows Elon Musk can combine strengths of Tesla and SpaceX into something new, and that a merger makes sense given synergies such as Tesla battery packs for data centers and humanoid robots that could help SpaceX build and refuel rockets. Rumors suggest an announcement as early as December, with SpaceX acquiring Tesla in an all-stock deal in which Tesla shareholders receive about 0.7 SpaceX shares per Tesla share. Barclays estimates Musk would own about 37% of the combined company with roughly 56% voting power, and the combined valuation would make it the fifth-largest company in the world. The host also notes doubts about mass-market scaling, manufacturing, cost, safety regulation, and the fact that the Roadster is the most delayed product from one of Musk's companies.
- A SpaceX-Tesla Merger Could Happen Before the End of 2026. Here's What That Could Mean for the Stocks
Elon Musk runs both Tesla and SpaceX, which share overlapping projects and have strong incentives to merge for synergies and easier fundraising. Many analysts see a merger as a question of when, not if, and Barclays' Dan Levy suggests favorable conditions under the Trump administration could speed up a deal, noting Musk reportedly donated $276 million to Republican midterm campaign efforts. Tesla's annual general meeting, which must take place by Dec. 6, could be when a shareholder vote occurs. However, both stocks are highly valued: SpaceX is unprofitable and Tesla trades at a price-to-earnings multiple above 300, so much of the growth potential may already be priced in and a merger announcement may not spark a large surge.
- SpaceX Stock Climbs After Musk Gift Pledge; Analysts Predict Tesla Merger Price
- Tesla's rocket-thrusted Roadster hints at a SpaceX merger
Host Ejaaz Ahamadeen breaks down Tesla's new Roadster, unveiled by Elon Musk at a pre-launch event last week, which can climb a ramp, flip upside down, stick to the surface, launch and land without damage. He explains that an underbody fan suction system creates downforce of up to 4.7 tons (about 2 G), while about 10 thrusters using pressurized gas, with no fuel, stabilize the car in the air, the same type SpaceX used on the Falcon 9. The car goes from 0 to 60 mph in 0.81 seconds, the fastest of any road car, and rumors suggest Tesla and SpaceX could merge by year-end, forming the world's 5th largest company. The episode also covers Anthropic's $16.8B Q3, Google's Gemini 4 and Meta's open-source model.
Related markets
Latest news
- Iran warns US and Israel
Iran's Armed Forces Chief of Staff, Major General Ali Abdollahi, warned on October 18 that the US and Israel would face a far harsher response if they continue actions Tehran considers provocative. He said Tehran is awaiting their next moves and that Iran's armed forces remain ready for any scenario. Tehran accuses Washington and Tel Aviv of trying to weaken its government, and tensions have risen since earlier conflicts, including a 12-day war. Iran says it will not back down under external pressure.
- Is TC Energy (TRP) a Good or Bad Investment at Today's Multiple?
TC Energy trades at 21.19 times next year's expected earnings, closing at $61.74 on October 16 after a 1.5% return over 6 months, versus 10.5% for the Insider Monkey Billionaire Index and 9.3% for the State Street SPDR S&P 500 ETF Trust. The company operates natural gas transmission pipelines across Canada, the United States and Mexico, plus power generation, with a 44.25% operating margin, and latest-quarter earnings rose 18.00% on revenue up 5.70%. The article flags risks including debt at 170.37% of equity, the loss of crude oil pipelines to South Bow in 2024, and volumes that depend on North American gas demand from power and LNG exports. A 4.01% yield is cited as income while the market decides whether the stable business justifies the multiple relative to its growth.
- Should You Buy This Trump AI Stock Ahead of Earnings?
Microsoft (MSFT) reports quarterly results on October 28 and ranks eighth in Trump's latest stock portfolio, after Trump bought the stock five times in August. Bulls point to Azure growth of 43% last quarter, with management expecting about 45% in the current quarter, and to demand that exceeds available computing capacity. Bears cite rising capital spending that Deutsche Bank says could push free cash flow close to breakeven in fiscal 2027, about two-thirds of spending going to short-lived equipment such as chips, and OpenAI making up about 45% of the commercial backlog in the December quarter. The stock trades at 26.75 times forward earnings, a 27% premium to the sector median of 21.01 but 12% below its own five-year average of 30.47, with a PEG ratio of 1.70 versus a sector median of 1.14. The article concludes that investors pay more than for the average tech stock but less than they usually pay for Microsoft.
- What Is Williams' (WMB) Economic Moat, and Is It Steel or Permits?
Williams (WMB) closed at $71.28 on October 16, with a 0.5% return over 6 months, compared with 10.5% for the Insider Monkey Billionaire Index and 9.3% for the State Street SPDR S&P 500 ETF Trust. The article argues its main advantage is the Transco pipeline, which runs from the Gulf Coast up the eastern seaboard, where several attempts to build new pipe have been abandoned after failing to win approvals. A 39.54% operating margin and 21.50% return on equity are cited as evidence of this advantage, although revenue rose only 7.80% last quarter. Limits noted include debt at 200.37% of equity, rules that also restrict Williams' own growth, and a price of 26.81 times expected next-year earnings. The dividend yields 2.95%.
- Marvell Jumps 6% as GF Securities Says Google Chip Delay Won’t Dent Its Position; Broadcom Rises 3%
Marvell shares rose 6% to $241.27 in afternoon trading after a reported delay in Google's next TPU chip, while Broadcom gained 3%. GF Securities analyst Jeff Pu said the delay does not change Marvell's medium- to long-term position in Google's chip supply chain. Marvell reported Q2 FY2027 revenue of $2.74 billion, up 36.5% YoY, with its Data Center segment at $2.17 billion, or 79% of revenue. Google can acquire up to 7% of Marvell shares under a warrant tied to revenue targets, and management expects its custom business to more than double in fiscal 2028. Q3 revenue guidance is $3.15 billion, plus or minus 5%, with non-GAAP gross margin of 57.5% to 58.5%, and the article notes Marvell still needs to convert its Google programs into reported revenue.
- Is ONEOK (OKE) Cheap at 14 Times Next Year’s Earnings?
ONEOK (NYSE:OKE) closed at $93.31 on October 16 and returned 11.4% over six months, versus 10.5% for the Insider Monkey Billionaire Index. The stock trades at 14.49 times next year's expected earnings and yields 4.59%, and revenue rose 52.80% last quarter as the company grew through acquisitions. The article argues that much of this growth was bought rather than built, with only 13.25% of revenue remaining as operating profit and debt at 143.07% of equity. Because a large part of the business involves buying and reselling liquids rather than earning transport fees, the article views the discount as having a reason behind it. It concludes that investors should watch margins rather than revenue.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.