Shares of Tesla, Inc. (NASDAQ: TSLA) edged 0.1% higher overnight Tuesday as fresh Wall Street commentary reignited speculation over a potential merger between Tesla and SpaceX.
JPMorgan said a possible Tesla-SpaceX combination looks “strategically coherent on paper,” pointing to vertical integration potential across AI, robotics, energy, transportation, and space.
The brokerage noted that SpaceX’s record IPO could give it “high-value acquisition currency,” making a deal more plausible from a market-value standpoint.
JPMorgan maintained a Neutral rating on Tesla even as it acknowledged the strategic logic behind bringing Elon Musk’s major business interests under one roof.
Elon Musk is the largest shareholder of both companies, and Tesla already owns approximately 19 million SpaceX shares, deepening the financial ties between the two enterprises.
The companies also collaborate across AI tools, chip development, and computing infrastructure, fueling recurring speculation that Musk’s automotive, AI, and space ventures could eventually be consolidated.
RBC Capital took a more bullish stance, raising its Tesla price target to $500 from $475, implying a 24% upside from current levels, while maintaining an Outperform rating.
RBC updated its model to include a 25% to 30% premium over current trading levels to reflect a potential SpaceX acquisition scenario, and highlighted robotaxi as Tesla’s strongest long-term opportunity.
The firm cited a $4.2 trillion total addressable market for robotaxi services, arguing Tesla could generate substantial value even by capturing a minority share of that market.
However, JPMorgan flagged the “practical bottleneck of securing multi-jurisdictional regulatory approvals,” especially in markets such as China, where Tesla has major manufacturing and sales exposure.
That concern mirrors a risk Morningstar raised last month, noting that SpaceX’s deep U.S. government and military contractor ties combined with Tesla’s China operations could attract national security scrutiny.
Tesla’s robotaxi rollout has separately captured investor attention after the company launched unsupervised vehicles in Miami over the weekend, adding momentum to its autonomous driving narrative.
Morgan Stanley said it expects Tesla to expand robotaxi operations to Phoenix, Orlando, Tampa, and Las Vegas by year-end, with its combined fleet reaching 1,500 vehicles by the close of 2026 and 30,000 by 2030.
“While the absolute number of robotaxis is likely immaterial to earnings this year, the rate of change in the rollout provides more clarity for investors who may be skeptical about Tesla’s autonomous technology at scale,” Morgan Stanley said.
Tesla is scheduled to report full second-quarter results on July 22, with investors focused on margins, robotaxi expansion, Full Self-Driving development, Cybercab progress, and broader AI strategy.
TSLA stock had slid 4% during Tuesday’s regular session, closing at $402.90, and remains down roughly 10% year-to-date, making it the second-worst performer among the so-called Magnificent Seven group.
