Wedbush analyst predicted a Tesla and SpaceX merger in 2027
Dan Ives believes by merging, Musk's corporations will be "the world's best physical AI project," but other Wall Street analysts are talking a possible "bailout" for Tesla
This is the second time a Wedbush analyst has talked about a possible merger between Musk's two companies / Photo: Ken Wolter/Shutterstock
Aerospace company SpaceX and electric car manufacturer Tesla will merge into a single company in 2027, predicted Dan Ives, a well-known market techno-optimist and managing director of investment company Wedbush Securities. He said this in a note published after the release of the SpaceX prospectus for the upcoming IPO, writes The Wall Street Journal (WSJ).
Details
Dan Ives believes that the merger of Elon Musk's two companies is possible, as Tesla already owns a stake in SpaceX, and the Terafab joint venture (a project to build a factory for the production of next-generation AI chips) will further link the activities of both structures. "Musk wants to own and control an increasing part of the artificial intelligence ecosystem," the analyst noted. "The businessman's "Holy Grail" on this path, according to Ives, may be the merger of SpaceX and Tesla - it may be necessary "to create a bridge between two revolutionary tech giants seeking to lead the AI revolution," the analyst wrote.
SpaceX's prospectus itself, filed with the SEC on May 20, says SpaceX and Tesla have "laid an early foundation for a strong and meaningful partnership through a series of limited but successful commercial projects." Since 2023, according to the document, Tesla has received about $890 million in revenue from SpaceX and Musk's AI project, xAI, including $506 million in 2025 and $191 million in 2024 for supplying energy storage for large enterprises, data centers and Megapack power plants, according to the document. SpaceX also purchased Tesla's electric pickup truck, Cybertruck, for about $131 million last year, Bloomberg writes.
The SpaceX IPO, scheduled for June 12, according to Reuters, could value Musk's aerospace company at $1.8 trillion and become the largest offering in stock market history. Investors are betting on the growth of Starlink, the development of the Starship spacecraft and Musk's plans to create orbital data centers for AI, which the company intends to finance with raised funds.
Context
This is not the first time a Wedbush analyst has talked about a possible SpaceX and Tesla merger. In late April, Dan Ives said that SpaceX's IPO would create the necessary financial foundation that would allow the corporate merger process to be set in motion shortly thereafter. "I think that's the path they're going to take," Ives said, "and it will eventually culminate in a merger [SpaceX] with Tesla. ... I estimate the probability of such an outcome at 80-90%"(quoted by Benzinga).
According to Ives, the merger of SpaceX and Tesla will create an unprecedented world-class scientific, engineering and technological leader. The autonomous robotics business alone could add $1 to $2 trillion to Tesla's market capitalization, he believes.
What other analysts are saying
Although Ives sees the potential SpaceX and Tesla deal as a logical strategic move to create "the world's best project in the physical realization of AI," other experts view this hypothetical alliance quite differently, Benzinga notes.
Gerber Kawasaki Wealth & Investment Management CEO Ross Gerber said in late April that the merger could be a "bailout" for Tesla, which is now facing stiff competition in the electric car market and having to reassess its capital expenditures. "It looks like SpaceX will just come to the rescue of Tesla and absorb it, even though they will officially call it a merger," Gerber wrote on the X social network.
He added that the merger of SpaceX and Tesla would continue a trend that investors have already seen with another Elon Musk AI startup - xAI - and social network Twitter (X), and would result in the entire conglomerate "becoming one big indivisible ball of Elon's assets."
Earlier in May, Bloomberg had already warned that the upcoming SpaceX IPO would pose serious risks to Tesla investors as the market would see an alternative entry point for Elon Musk's business empire. Some Wall Street analysts expect an outflow of attention and capital to the billionaire's new "shiny toy," which could lead to a "split" in the automaker's retail shareholder base, Bloomberg pointed out.
This article was AI-translated and verified by a human editor
