Tesla Stock Could Jump 20% If SpaceX Merger Happens, Analyst Says
Wall Street is warming to the idea of a Tesla-SpaceX combo. One analyst thinks it could send Tesla shares up 20%.
If you own Tesla stock, here's a scenario worth paying attention to: some analysts on Wall Street are starting to think a merger between Tesla and SpaceX — both helmed by Elon Musk — is more likely than it used to be, and they believe it could push Tesla's share price up roughly 20%.
The idea of combining Musk's two most prominent companies has floated around for years, but it's gaining fresh traction. A Tesla-SpaceX tie-up would be a massive deal, bringing together an electric vehicle and energy company with a private rocket and satellite internet business that's widely considered one of the most valuable startups in the world.
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For everyday investors, the logic here is fairly straightforward: SpaceX carries enormous valuation potential that isn't currently baked into Tesla's stock price. If the two companies merged, Tesla shareholders would effectively get a piece of that SpaceX upside — which is why analysts see room for a significant pop in Tesla's share price if a deal ever materialized.
Of course, a merger like this would come with serious complexity. SpaceX is a private company, which means any combination would require navigating tricky valuation questions, regulatory scrutiny, and shareholder approval on Tesla's side. Musk's dual role leading both companies would also draw intense attention from investors and watchdogs alike. None of that makes a deal impossible, but it does mean there are plenty of hurdles between speculation and reality.
For now, this remains an analyst thesis rather than a confirmed plan — but on Wall Street, these kinds of narratives can move markets on their own. Continue reading at MarketWatch.com