Tesla stock is climbing this morning and it is all thanks to its partner in the stars. SpaceX has officially filed the paperwork for its initial public offering, which aims to make it a $2 trillion company by late June. As investors dig into the details of the filing, the connection between the two companies has become impossible to ignore. Many traders are now betting that this growing overlap is merely the beginning of a move to combine the two into one massive business. Wedbush analyst Dan Ives shared his outlook on this possibility, stating: “We continue to believe that SpaceX and Tesla will eventually merge into one company in 2027, with the groundwork already in place for both operations to become one organization.”
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Ives also added: “Musk wants to own and control more of the AI ecosystem, and step by step, the holy grail could be combining SpaceX and Tesla in some way to give the connected tissue between both disruptive tech stalwarts looking to lead the AI Revolution.”
SpaceX and Tesla Are Working Together on Several Projects
While Tesla builds self-driving cars and humanoid robots, SpaceX is focusing on building a massive network of orbital data centers. Both companies are spending tens of billions of dollars to lead the AI revolution.
The two firms are working together on several major projects, including a high-tech chip-making facility known as Terafab and the development of a shared digital AI assistant. Because of these deep ties, Wall Street is buzzing with rumors that these two giants could eventually become one.
The SpaceX IPO Filing Mentions “Tesla” 87 Times
The SpaceX IPO filing mentions “Tesla” 87 times, proving just how much the two companies rely on one another. Tesla currently owns roughly 19 million shares of SpaceX, thanks to its earlier investment in the artificial intelligence firm xAI.
Beyond financial stakes, the collaboration is operational. SpaceX has helped Tesla with purchasing power, while Tesla has supplied SpaceX with energy storage systems. They even share common board members, which keeps the leadership of both companies perfectly aligned.
As SpaceX prepares to raise $75 billion in its upcoming IPO, investors are watching closely. While a formal merger between Tesla and SpaceX is not expected to happen before the IPO, the path forward for both companies is clearly converging.
Is Tesla Stock a Hold or a Sell?
Analysts remain cautious on Tesla’s long-term outlook. On TipRanks, TSLA has a Hold consensus rating based on 12 Buys, 12 Holds, and five Sell ratings. The average 12-month Tesla price target of $403.86 implies 3.2% downside risk from current levels.
