BNP Paribas: Tesla and SpaceX merger is far off

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BlockBeats news, July 9 — Analysts at BNP Paribas cast doubt on the likelihood of a near-term merger between Tesla and SpaceX. "The heavy cash burn at both companies and significant regulatory risks complicate any potential SpaceX-Tesla merger," they said. The improving investor sentiment in Tesla driven by merger speculation may be overly optimistic. BNP Paribas maintains its underweight rating and $280 price target on Tesla.

"We are concerned that Tesla will face tough KPIs in its robotaxi and Optimus businesses over the next two years, which will create downside pressure on the core business before any SpaceX merger actually materializes."

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