Wall Street analysts are weighing SpaceX (SPCX) as a potentially giant company, especially with a possible tie-up with Tesla (TSLA). Elon Musk, CEO of both firms, projects SpaceX's annual recurring revenue by end-2027 at between 500 billion USD and 1 trillion USD. Its booming AI compute business has fueled bets that SpaceX could become a fifth hyperscaler alongside Meta, Alphabet, Microsoft and Amazon. RBC Capital Markets says Tesla's planned Terafab chip production is a way to bypass Nvidia and TSMC, while Canaccord Genuity raised its Tesla price target to 442 USD from 410 USD on a merger-based view. JPMorgan more than doubled its SpaceX price target to 500 USD, with shares trading at 146 USD on Friday.
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 Musksemiconductorsartificial intelligence
Open a keyword to see other news on the same topic.
Related tickers and likely impact
TSLA
▲ Likely positiveTesla, Inc.
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.5T |
| Close on 10/23/2026 | 372.21 |
| Change that session | -0.63% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- TSLA, SPCX Boards Confirm Special Committees On Potential Combination As Megapack Deals And Terafab Plans Deepen Ties
Tesla and SpaceX, both led by Elon Musk, have each formed special committees of independent directors to explore deepening their relationship, which could include a business combination, though no terms have been agreed and no deal is assured. Musk, who said he is a conflicted party, is not taking part in the committees’ discussions. In the quarter ended September 30, Tesla recorded $221 million of revenue from selling Megapacks to SpaceX and was owed $729 million in receivables from SpaceX. The companies are also jointly planning Terafab, a semiconductor plant in Grimes County, Texas, with an initial investment of about $16.8 billion, to make chips for AI, robotics and space-based computing. Tesla holds an equity stake of less than 1% in SpaceX, with a fair value of $2.9 billion as of September 30.
- Elon Musk Eyes SpaceX-Tesla Merger, Huang Pitches ‘Financeable’ Chips, Zuckerberg Wants More Compute: Mag 7 Voices This Week
Elon Musk said a SpaceX–Tesla merger would be “a good idea,” but called a deal uncertain, as both companies’ boards have formed special committees that have not agreed on any terms. In SpaceX’s Q3 results, its Super Intelligence segment generated $7.6 billion in revenue, surpassing Starlink as its largest business. Musk said the main constraint on AI deployment is power, cooling and infrastructure rather than chips, and SpaceX plans to add about 20 gigawatts of capacity by the end of 2027, while some gas-turbine components face 12 to 18 month delays. Nvidia’s Jensen Huang said its computing hardware should become a “financeable asset,” estimating that a one-gigawatt AI factory costs about $50 billion and could generate roughly $40 billion in annual revenue. Wedbush said his comments on neocloud financing helped spark Thursday’s selloff.
- A SpaceX-Tesla megamerger could benefit both companies and Elon Musk's personal fortune
SpaceX shares rose 8% and Tesla 3.5% after Elon Musk said each company had formed special committees to discuss a possible combination. At current market values, the merged company would be worth about $3.5 trillion, the largest deal ever, and Musk argues it makes sense because both businesses rely heavily on artificial intelligence. Musk owns 11% of SpaceX and 19% of Tesla, and a change-in-control provision in Tesla's pay plan could treat many performance targets as met in a merger, which would make him richer. Although the shares are very expensive by most measures, most analysts still call them a bargain, and many work for banks hoping to win Musk's business. Democrats have called for investigations into SpaceX's federal contracts and could scuttle plans if they win big in next month's midterm elections.
- How a SpaceX and Tesla Merger Would Reshape Musk’s AI Empire
Elon Musk said on Tuesday that the boards of SpaceX and Tesla have each formed special committees of independent directors to study a merger, though no terms have been agreed. A combined company valued at roughly $3.5 trillion would own the Grok chatbot, X, Starlink, the Terafab chip project, the Starmind orbital data center plan, and Tesla’s robotaxi and Optimus robot businesses. Any deal needs the support of 50% of all outstanding Tesla shares, which Musk called “quite a high hurdle,” and Tesla’s annual meeting is set for December 3. SpaceX reported third-quarter revenue of $14.58 billion, above the $12.72 billion analysts expected, and its first quarterly profit since going public, largely from renting computing power to firms such as Anthropic and Google. Musk stressed that a merger is not certain, and SpaceX’s IPO paperwork warned that orbital AI computing relies on “unproven technologies.”
- Elon Musk backs SpaceX-Tesla merger as rocket firm turns profit
Elon Musk said he would back a possible merger of SpaceX and Tesla, calling it “a good idea,” while stressing that special committees at both companies have not agreed on terms and that a deal is not guaranteed. SpaceX reported net income of $4.4 billion for July–September, compared with a $1.1 billion loss a year earlier, as revenue rose 161% to $14.6 billion. The growth was driven by its AI unit, now called “Super Intelligence,” whose revenue rose more than ninefold to $7.6 billion on cloud computing deals with Anthropic and Google. Capital spending remains heavy, with $19.6 billion invested in the quarter and computing capacity reaching 1.7 gigawatts. Starlink revenue grew 69% to $5.2 billion, though average monthly revenue per consumer fell to $69 from $83.
- Musk Calls Tesla’s Merger Vote “Quite a High Hurdle.” JPMorgan’s Premium Math Puts the Stock Near $500.
Elon Musk said on SpaceX’s October 20 earnings call that a SpaceX-Tesla merger would need the approval of 50% of all Tesla shares, not just votes cast, and that the two companies’ special committees have not agreed on terms. JPMorgan expects an all-stock deal led by SpaceX at a typical 30% to 35% premium, or about $486 to $505 a share versus Tesla’s $373.71 close. Turnout was about 74% at Tesla’s 2025 annual meeting, so a deal would need roughly two-thirds of votes cast, and a new auto-vote program for retail holders could help but has no public enrollment figures. The article notes that a 30% to 35% premium would push Tesla’s 191.6x forward earnings multiple to about 250x, versus a five-year average of 107.7x. Musk also said there is no guarantee the committees will reach a deal.
Related markets
Latest news
- SpaceX Could Be a Game Changer for These 2 Dividend Stocks
SpaceX is reportedly planning a nationwide mobile network in the U.S. to compete with established carriers, after agreeing to buy a low-band spectrum portfolio from Grain Management for $8 billion. Bloomberg reports the company is seeking access to 80,000 U.S. cell tower sites and is in talks with Crown Castle. Tower returns rise sharply with each additional tenant, but SpaceX has not signed definitive leases, and TD Cowen estimates a nationwide build-out would cost over $80 billion. Crown Castle could benefit most, while the author leans toward American Tower for its more diversified platform.
- Ukraine disputes Elon Musk’s claim that its military violated Starlink terms during drone operations
Ukrainian defense adviser Serhii Beskrestnov disputes Elon Musk's claim that Ukraine's military violated Starlink's terms of service in drone strikes. He says Ukrainian drones using Starlink have been limited to speeds of 70 to 90 km/h (roughly 43 to 56 mph) for months, making deep-strike operations physically impossible. Ukraine says the restricted high-speed service disrupted its drone air defense during Russian attacks, and that service has since been restored. Musk has not explained why Ukraine was not notified before the restrictions were imposed. The report also cites Starlink revenue of $5.25 billion in the third quarter of 2026, and notes that Ukraine and its allies are seeking sovereign satellite alternatives.
- Tesla (TSLA) Stock Gets Fair Value Bump As Analysts Split On AI And SpaceX
Tesla's analyst fair value estimate has moved from US$395.57 to US$408.36, reflecting a split among analysts. Bullish views tie higher targets to AI, autonomy and a possible SpaceX merger, with Cantor Fitzgerald, Piper Sandler, Mizuho and Tigress citing targets in the US$460 to US$550 range. Cautious views point to cash burn, heavy capex and execution risk across Robotaxi, Cybercab, Optimus, Semi and Roadster. Phillip Securities raised its target to US$230 but keeps a Sell rating, while Wells Fargo sees the Cybercab launch as underwhelming and keeps an Underweight rating with a US$130 target.
- Investors Are Worried About Too Much AI Spending. They're Not Wrong, But It's Paying Off for These 2 Tech Stocks.
AI companies have poured hundreds of billions of dollars into capex this year, and spending could exceed $1.3 trillion in 2027, according to S&P Global. The article argues that not every AI model or product will generate revenue, so investors are right to be skeptical, but some firms, including Microsoft (MSFT) and Amazon (AMZN), are already seeing returns on their investments. Amazon raised capex to $220 billion this year, mostly for AI; AWS holds 28% of the cloud computing market according to Synergy Research Group, has an annualized revenue run rate of $169 billion, and earned $16.6 billion in operating income at an operating margin above 39%. Microsoft is spending $175 billion on capex, and Azure's annualized revenue run rate has reached $100 billion, up 41% from a year earlier, with management saying cloud revenue could rise 45% in fiscal 2027. The author favors Microsoft over Amazon, citing an additional growth opportunity from AI software and services, including more than 30 million paid Copilot seats, a 50% jump in several months.
- Sharon Graham: Budget is Andy Burnham's first real test - it's time to take a different path
Unite's Sharon Graham says Andy Burnham's first Budget is a real test for Labour, and workers need changes they can feel soon. She calls for two immediate steps: ending the freeze on income tax thresholds and capping energy company profits to cut bills, which Unite estimates would give an average double-income household an extra £700 a year. For the long term, she urges public investment to rise by 1% of GDP, or around £28 billion a year, and for the National Wealth Fund, which has less than £30 billion in capital, to attract pension fund money totalling £3 trillion and channel it into rebuilding domestic industry. She argues working people have paid for successive crises, while privatisation and factory closures have left a £500 billion public investment backlog.
- Iranians fear return to all - out war with US and Israeli elections
Many Iranians fear a return to all-out war as Israeli and U.S. leaders escalate threats ahead of elections in both countries, while Iran's leaders remain defiant. Israeli Prime Minister Benjamin Netanyahu, facing a close vote on Tuesday, says Iran's leadership must be eliminated, and U.S. President Donald Trump vows to "finish the job" eight months after the war began, as a third aircraft carrier and thousands of troops head to the region. Some fear attacks just after the U.S. midterms on Nov. 3. The U.S. naval blockade of Iranian ports has restricted oil exports, the currency has hit record lows, inflation has soared, and medicine shortages have emerged. Former government official Sasan Karimi says economic pressure will not change Iran's negotiating position.
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.