Tesla shares fell more than 3% in premarket trading on Tuesday as analysts debated the implications of a potential merger with newly listed Space Exploration Technologies Corp. GLJ Research analyst Gordon Johnson stated that such a deal would suggest Elon Musk does not believe Tesla's Full Self-Driving software and Optimus humanoid robots are worth trillions of dollars. The debate follows Jefferies lowering its Tesla price target to $375, warning that growing merger expectations could shift investor focus away from Tesla's core electric vehicle business.
GLJ Research Questions FSD and Optimus Valuation
GLJ Research analyst Gordon Johnson said on X on Tuesday that a merger with SpaceX would imply Elon Musk does not believe FSD and Optimus are worth trillions. "The Tesla bull case appears to be unraveling in real time. A merger with $SPCX would imply Elon Musk does NOT believe FSD/Optimus is worth trillions as all that value would be left 'on the table," Johnson wrote. Tesla's premium valuation has long been tied to expectations that its Full Self-Driving software and Optimus humanoid robots could create trillions of dollars in value.
Jefferies Cuts Tesla Price Target to $375
Jefferies lowered its price target on Tesla to $375, warning that growing expectations of a future merger with SpaceX could shift investor focus away from Tesla's core business. The firm said Tesla stock may increasingly trade as a proxy for SpaceX, with movements driven by speculation over SpaceX's valuation and any potential merger terms. Jefferies also argued that Tesla's valuation remains out of sync with its financial outlook. The brokerage cautioned that the rollout of robotaxis and Optimus robots could initially weigh on profitability, as both businesses are likely to operate at a loss in their early stages.
SpaceX President and Wedbush Analyst Support Merger
Earlier this month, SpaceX President Gwynne Shotwell highlighted the synergies between the two companies. "There's no question that there are synergies between Tesla and SpaceX and our futures. There's a convergence of what we're all trying to accomplish in the future," Shotwell said in an interview with CNBC. Dan Ives said he would be "shocked" if the SpaceX-Tesla merger does not happen over the next year. "When I look out over the next year, I continue to view that... I would be shocked if it doesn't happen, just given the synergies, given the cross-pollination, and also for Musk himself, I think it makes the most sense to have all that AI technology under one hood, especially given the controlling nature of SpaceX," Ives said in an interview with CNBC.
Tesla Stock Declines in Premarket Trading
Tesla stock was down more than 3% in premarket trading on Tuesday. Tesla shares have declined more than 13% so far this year.
FAQ
What did GLJ Research analyst Gordon Johnson say about a Tesla-SpaceX merger?
Gordon Johnson stated on X on Tuesday that a merger with SpaceX would imply Elon Musk does not believe Tesla's Full Self-Driving software and Optimus humanoid robots are worth trillions of dollars, as all that value would be left "on the table."
What price target did Jefferies set for Tesla stock?
Jefferies lowered its price target on Tesla to $375, warning that growing merger expectations with SpaceX could shift investor focus away from Tesla's core electric vehicle business and cause the stock to trade as a proxy for SpaceX.
What did SpaceX President Gwynne Shotwell say about synergies between Tesla and SpaceX?
Earlier this month, Gwynne Shotwell said in an interview with CNBC that there are synergies between Tesla and SpaceX and a convergence of what both companies are trying to accomplish in the future.
