‘Tesla and SpaceX Could Merge in 2027,’ Says Dan Ives

EV maker Tesla TSLA -3.23% ▼ and aerospace firm SpaceX could merge as soon as 2027, according to five-star Wedbush analyst Dan Ives, who says the idea is no longer far-fetched but increasingly logical. In his latest note, Ives argues that the two companies are already becoming more connected through shared AI ambitions and operational overlap. In fact, Tesla now indirectly owns a small stake in SpaceX after its $2 billion investment in xAI was converted into SpaceX shares following SpaceX’s acquisition of the AI startup.

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At the same time, the ties between the two companies are becoming more concrete. Earlier this year, regulatory filings officially linked Tesla and SpaceX financially, and more recently, both companies announced a joint “Terafab” facility in Austin. This project includes two advanced chip factories:

• One is focused on Tesla’s AI needs for vehicles and Optimus robots

• The other is for space-based data centers

According to Ives, this is the “first step” toward full integration. Moreover, SpaceX’s expected IPO, which could value the company at around $1.75 trillion, would provide major funding for projects like Starship and orbital AI infrastructure. Indeed, as demand for AI continues to surge, traditional data centers are expected to face limits due to energy and land constraints. Therefore, SpaceX plans to launch solar-powered satellites that act as data centers in space.

What Is the Prediction for TSLA Stock?

Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 11 Holds, and seven Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $399.33 per share implies 10.9% upside potential.

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