Elon Musk has set plans in motion to potentially merge SpaceX and Tesla, though no merger has been announced and each company has formed an independent committee to study it. The author argues the businesses overlap little, with SpaceX focused on launches, Starlink and AI data centers while Tesla makes electric vehicles and battery packs and works on autonomy and humanoid robots. The author suggests the main draw is Tesla's $45 billion in cash, as SpaceX's capex was nearly $20 billion last quarter, with plans to double it to $40 billion in Q4 against revenue of $14.6 billion. Tesla, with a $1.6 trillion market cap and a P/E of 444, has stagnant revenue, while SpaceX trades at a price-to-sales ratio of 59, so the author concludes a merger would only make the situation messier.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
SpaceXTSLAmergers and acquisitionsElon Muskelectric vehicles
Open a keyword to see other news on the same topic.
Related tickers and likely impact
TSLA
▼ Likely negativeTesla, Inc.
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.6T |
| Close on 10/30/2026 | 399.82 |
| Change that session | -0.86% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Barclays Upgrades Tesla Stock Citing SpaceX Merger Potential And Robotaxi Growth
Barclays upgraded Tesla from Equalweight to Overweight and raised its price target to $450 from $370, and the shares rose 2.0% in pre-open trading. The bank cited three factors: the expected combination with SpaceX, an improving core auto business, and early signs that Robotaxi is gaining traction. Mizuho also raised its price target to $460 and kept an Outperform rating. Tesla said auto margins excluding credits rose from 16.3% to 18.1%, cumulative unsupervised Robotaxi miles grew 8x in the quarter, and it expects about $20 billion in capital expenditures this year. Elon Musk said the special committees at both companies have not agreed on merger terms, and a deal would need approval from 50% of all Tesla shares, which he called a high hurdle.
- Kevin O'Leary Says Tesla-SpaceX Merger Is Inevitable After Flying Roadster Demo — 'If You Own Tesla, You're Gonna Own New Company'
Kevin O'Leary said in a video posted on X on Oct. 17 that Tesla will merge with SpaceX and that Tesla shareholders would end up owning the new company. His comments followed Tesla's Oct. 15 demonstration of its second-generation Roadster at SpaceX's Texas facility, where an uncrewed prototype drove up a ramp upside down, performed midair flips and landed using SpaceX-derived cold-gas thrusters. Tesla claimed a 0-to-60 mph time of 0.81 second, with production targeted for 2028. The article points to existing ties between the companies, including the proposed Terafab semiconductor project, SpaceX's purchases of Tesla Megapacks, Tesla's holding of SpaceX shares, and Grok's integration into Tesla vehicles after SpaceX's combination with xAI. Dan Ives puts the odds of a merger by the end of 2027 at 80%, while Barclays analysts say an announcement could come before Tesla's next annual shareholder meeting. Any deal would need shareholder approval and would raise questions about valuation, shareholder compensation and which company would acquire the other.
- Tesla stock jumps as Barclays bets a SpaceX takeout bump is coming
Barclays upgraded Tesla to Overweight from Equal Weight and raised its price target to $450 from $370, and the stock rose 6% on Monday. The bank believes a possible Tesla merger with SpaceX could bring a takeout premium, after Elon Musk said both companies had formed special committees to discuss a deal. Barclays sees an all-stock acquisition by SpaceX as the most likely structure, with about 3.1 SpaceX shares per Tesla share at a 20% premium, leaving Musk with about 53% of the combined company's voting power; approval requires more than 50% of total outstanding shares. Barclays forecasts 1.80 million Tesla vehicles in 2026 and 1.92 million in 2027, and Tesla's robotaxi fleet had logged about 3.1 million unsupervised miles across 6 cities as of October 18. Barclays does not expect robotaxis to matter financially in the near- to mid-term.
- TSLA Is The Worst-Performing Mag 7 Stock This Year But Leads The Pack In October – Barclays Sees 19% Upside Potential
Barclays upgraded Tesla to 'Overweight' from 'Equal Weight' and raised its price target to $450 from $370, a near 19% upside from current levels. The move reflects a potential Tesla-SpaceX combination, after CEO Elon Musk confirmed both companies formed independent committees to explore it, while stressing that an agreement is not a 'certainty.' Tesla's third-quarter revenue of $28.05 billion missed estimates of $28.3 billion, though adjusted EPS of $0.48 beat expectations, and vehicle deliveries fell 2% to 486,532 units. Barclays expects automotive growth to resume this year, supported by FSD adoption and higher Shanghai exports, and projects energy storage shipments to rise more than 50% in 2027. Tesla is down more than 15% year to date, lagging the 6.7% gain of the Roundhill Magnificent Seven ETF, though it leads the group in October with gains above 7.3%.
- Barclays upgrades Tesla, says SpaceX merger “now a key part of bull case”
Barclays upgraded Tesla to Overweight from Equal Weight and raised its price target to $450 from $370, citing a potential SpaceX merger and early signs of a Robotaxi inflection. Analyst Dan Levy said the widely expected deal could support the stock, but the narrative should not rest on M&A alone. Tesla's energy business is nearly sold out for 2027 on data-center demand. Musk said the companies had formed special committees to discuss a merger, and Levy views the deal as effectively settled and a key part of the Tesla bull case. Levy sees an all-stock SpaceX acquisition as the most likely structure, which would need approval from more than 50% of each company's total voting power.
- Could a Tesla-SpaceX merger really be the next big move for Elon Musk?
Two speakers discuss a possible Tesla-SpaceX merger and the outlook for Tesla stock. Speaker A argues that SpaceX, which he calls a vertically integrated AI company, would make a powerful combination, and says he will keep focusing on Tesla's Megapack business, which is sold out in utility-grade battery storage, as well as Optimus. He says he bought in at about $100 a share three years ago and sees volatility as a friend given his long-term perspective. Speaker B views Tesla's recent results as mixed to negative, with profit down over 40%, flat revenue, and better free cash flow mainly because capital spending was cut. He says Tesla is behind Waymo in autonomous driving (800 versus 8,000) and behind China in humanoid robots, and suggests a merger could be interesting and might benefit Tesla shareholders.
Related markets
Latest news
- Why AI is boosting Meta's ad business while hurting Google search
Meta's ad revenue rose 26% year over year to $63.1 billion in the third quarter, more than twice the pace of Google Search's 12% growth to $63.4 billion, the widest gap in Meta's favor since 2021. The article attributes Meta's advantage partly to AI-driven ad targeting, while Google faces pressure as chatbots such as ChatGPT, Claude and Meta's Muse reduce clicks on search links. Alphabet shares fell more than 12% after its earnings report, wiping out about $500 billion in market value, while Meta stock dropped 14% in October. Both companies are spending heavily on AI infrastructure, which has pushed them into negative free cash flow and raised questions about whether that spending will generate enough revenue. Google Cloud grew over 100% to $31 billion in quarterly revenue, and Meta CFO Susan Li said almost 10 million advertisers used at least one of its AI tools.
- The Stock Market Is Doing Something for Only the 3rd Time in 28 Years, and History Says It's Clear What Comes Next for Stocks
Since the 2022 bear market bottomed, the Dow, S&P 500 and Nasdaq Composite have gained 82%, 115% and 154%, helped by AI infrastructure build-out, record IPOs and buybacks. The article highlights the Shiller P/E (CAPE) ratio, at 40.66 on Oct. 26, 133% above its long-term average of 17.44, and above 40 only three times in history, all since 1999. Previous episodes above 40 were followed by sharp falls, including the dot-com crash that cut the S&P 500 by 49% and the Nasdaq Composite by 78% by late 2002. The author notes the ratio has stayed above 40 for six months but argues bear markets are often short-lived, citing a Bespoke Investment Group analysis of S&P 500 bull and bear markets since 1929; the article is cut off before giving those results.
- $10,000 in Rocket Lab at Its Record High Is Worth About $3,900 Today. Here's What Gets That Money Back.
Rocket Lab's shares hit a lifetime high of roughly $150 in late May and are now down about 61%, meaning a $10,000 investment made at that peak would be worth about $3,900. Second-quarter revenue rose 62% to about $234 million and the order backlog grew 137% to $2.36 billion, but the Neutron rocket launch has been pushed from this year to 2027. The stock now trades at roughly 36 times expected sales, a sharp contraction from its peak valuation multiple. Space stocks without strong AI stories have been punished as growth-stock enthusiasm concentrated on AI, and the article argues Rocket Lab may need both stronger results and renewed market interest in the space sector to regain its previous valuation high.
- With Midterms Looming, the Crypto Industry Is Mobilizing to Maintain a Pro-Crypto Regulatory Environment. History Says This Happens Next.
Crypto lobbying groups have spent about $176 million on more than 100 congressional races ahead of the U.S. midterms, according to a Reuters review, though past election spending has not always produced the laws the industry wanted. The Senate failed on Sept. 15 to advance the Clarity Act, which got only 49 of the 60 votes needed, mainly over ethics rules for officials profiting from crypto. Fairshake, the industry's largest super PAC, spent $150.8 million through Oct. 20, and 53 of its 58 backed candidates in primaries and special elections won. The article notes Bitcoin rose 155% in 2023, a year the SEC brought 46 enforcement actions against crypto actors, suggesting markets can grow without friendly regulation. It argues fears of a crypto ban or burdensome rules are usually overblown.
- GOOGL Market Cap Drops Nearly $500B After Google Search Fell Below 50% Of Alphabet's Revenue — David Sacks Explains Why That's A Good Thing
David Sacks said investors may be reading too much into the fact that Google Search's share of Alphabet's overall revenue has dropped below 50%.
- SK Hynix Shares Surge. Why It's Not Too Late to Buy the Stock.
SK Hynix's third-quarter revenue rose 328% year over year to 104.62 trillion won ($77.9 billion), beating the 98.34 trillion won analyst average, mainly on higher memory prices. Operating profit jumped 632% to 83.33 trillion won ($62 billion), with gross margin at 86% and operating margin at 80%. The company announced a 20 trillion won ($14.9 billion) buyback and a 14 trillion won ($10.4 billion) dividend, and plans to return 50% of its cumulative 2025–2027 free cash flow to shareholders. It said HBM4 prices will rise next year and that HBM demand is more than double its supply. The author argues the stock still looks attractive at 4.5 times forward earnings for 2027, while acknowledging that memory is cyclical.
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.