Traders now see a greater than even chance that Tesla and SpaceX will merge by early 2027, following a Barclays note that outlined a potential deal structure.
01Summary
- 01Kalshi prediction market odds of a merger before March 2027 rose to 56% on Friday morning, from 29%.
- 02Barclays analyst Dan Levy said a merger could be announced before Tesla's annual general meeting, which must be held by December 6, 2026.
- 03Elon Musk, who controls both companies, spoke of growing overlap between Tesla and SpaceX on Tesla's latest earnings call.
- 04Barclays expects the merger to be proposed as an AI vertical integration, combining Tesla's Robotaxi and Optimus with SpaceX's Grok and Macrohard.
- 05Evercore ISI boosted its 12-month price target on SpaceX by 20% to $275, recommending buying shares ahead of its next earnings release.
02Why it matters
A Tesla-SpaceX merger would combine two of Elon Musk's most valuable companies, potentially reshaping the electric vehicle, space and AI industries, and affecting the value of related stocks.
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