Bank of America said a potential Tesla–SpaceX merger could face its biggest regulatory challenge in China, given Tesla's reliance on its Shanghai plant and SpaceX's ties to the US defense industry. Under the all-stock deal BofA described, the Shanghai factory, which makes roughly half of Tesla's global output, would come under a major US defense contractor, raising possible national security concerns. Tesla says the plant has an installed annual capacity above 950,000 vehicles. BofA said it believes Tesla's special committee can likely negotiate a premium, and it kept its 'Buy' rating and $460 price target on Tesla. At the time of writing SPCX was down more than 5% and TSLA 1.8%, with TSLA down 9% in 2026 and SPCX near its $135 IPO price after a sharp sell-off this month.
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TSLAmergers and acquisitionselectric vehiclesChina
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Related tickers and likely impact
TSLA
▼ Likely negativeTesla, Inc.
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.5T |
| Close on 10/29/2026 | 403.30 |
| Change that session | -0.23% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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