A merger between Space Exploration Technologies Corp. (NASDAQ:SPCX) and Tesla Inc. (NASDAQ:TSLA) is possible, but significant hurdles stand in the way, say analysts.
RBC’s Tom Narayan said an all-stock acquisition is the most likely structure, citing operational synergies in AI training, Tesla’s Megapack energy-storage systems, and the Terafab chip project. He estimated Tesla could “potentially” receive a 20%–30% takeover premium and raised his Tesla price target to $500 from $475, considering the impact of a possible merger, reported MarketWatch on Tuesday.