A recent note from Barclays has sparked significant speculation regarding a merger between Tesla and SpaceX, with prediction market traders raising the likelihood of such an event to 56% for early 2027, up from 29% just days prior. This surge in confidence follows Musk's remarks about the increasing overlap between the two companies during Tesla's latest earnings call.
Notably, Tesla showcased its long-delayed Roadster, which utilizes SpaceX technology, further intertwining the two brands. Barclays analyst Dan Levy suggests that the merger could be framed as a vertical integration focused on artificial intelligence, potentially linking Tesla's Robotaxi and Optimus with SpaceX's Grok and Macrohard.
Additionally, the Terafab semiconductor project, which involves collaboration between Tesla, SpaceX, and xAI, may serve as a significant catalyst for the merger. Meanwhile, Evercore ISI has recommended buying SpaceX shares ahead of its upcoming earnings release, raising its 12-month price target for the stock by 20% to $275.
This evolving narrative around a merger could have substantial implications for both companies and their respective sectors