Bank of America says China is the main regulatory risk to a potential Tesla–SpaceX combination, since Tesla's Shanghai plant, which builds about half its global output, would fall under a major U.S. defense contractor. Although special committees have been formed and terms are not agreed, BofA views a deal as incremental upside for Tesla shareholders; a logical structure would be an all-stock acquisition of Tesla by SpaceX, and a 20% to 30% premium would still leave Musk with over 50% of voting power. The strategic case centers on Terafab, the companies' joint chip effort, whose long-term costs Musk expects to exceed $100 billion, and SpaceX has bought $626 million of Tesla Megapacks so far this year. BofA maintained its Buy rating and $460 price target on Tesla, expecting robotaxis to become a meaningful earnings driver by the end of 2027.
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TSLAmergers and acquisitionsSpaceXChina
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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 | 403.29 |
| 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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