TSLA Inc.

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TSLA Inc. stock analysis TSLA overview
Somewhat Bullish +35

What Happens If Tesla and SpaceX Merge? - Morningstar

🤝 Elon Musk is the CEO and largest shareholder in both Tesla and SpaceX, owning 13% of Tesla shares and potentially up to 20% via options.

💰 Tesla holds a less than 1% financial stake in SpaceX (approx. 19 million shares) after investing $2 billion in xAI prior to the acquisition.

🚀 SpaceX purchased $506 million worth of Tesla Megapack power cells and $130 million worth of Cybertrucks for its facilities in 2025.

🧠 The companies are partnering with Intel on Terafab to design AI microchips for Tesla's Optimus robots and SpaceX's orbital data centers.

🤖 A proposed merger would allow Tesla's Full Self-Driving software to use SpaceX's Grok AI system for consumer interaction.

🛰️ Robotaxis could leverage Starlink connectivity, while Tesla supplies batteries and solar panels to SpaceX operations.

⚠️ Corporate governance experts warn that the SpaceX IPO filing reveals weak investor protections and multiple conflicts of interest.

📉 Tesla shareholders may face hurdles due to concerns over SpaceX's valuation and Musk's control over 84% of SpaceX votes post-IPO.

Bullish Signals
  • A merger creates a solid business case by intertwining two companies heavily investing in AI and building a shared supply chain.
  • Tesla's Full Self-Driving software could integrate with SpaceX's Grok AI system to enhance consumer interaction capabilities.
  • Robotaxi services could utilize Starlink for superior connectivity, improving the autonomous driving experience.
  • The joint venture with Intel on Terafab positions both firms as key partners in developing specialized AI computing chips.
  • Tesla is already a major supplier to SpaceX, selling batteries, solar panels, and potentially cargo casings for Starship.
Risk Factors
  • Tesla shareholders may be concerned about SpaceX's valuation, creating potential resistance to a merger deal.
  • SpaceX's IPO filing reveals a mix of weak investor protections and multiple conflicts of interest under Musk's leadership.
  • Musk exercises control over 84% of SpaceX's shareholder votes after its IPO, raising governance concerns.
Full Analysis
Morningstar equity research analyzes the potential merger between Tesla (TSLA) and SpaceX, noting a solid business case driven by shared investments in artificial intelligence and supply chain integration. The article highlights that Elon Musk serves as CEO and largest shareholder in both entities, with significant overlapping ownership structures and strategic partnerships already in place. Key synergies identified include the potential for Tesla's Full Self-Driving software to utilize SpaceX's Grok AI system and Starlink connectivity for robotaxis. Additionally, the companies are collaborating on Terafab with Intel to develop specialized AI microchips for Optimus robots and future orbital data centers, while Tesla currently supplies batteries and solar panels to SpaceX. Despite the strategic alignment, significant hurdles remain, particularly regarding shareholder sentiment. The article points out that Tesla shareholders may be concerned about SpaceX's valuation and notes that SpaceX's IPO filing reveals weak investor protections and multiple conflicts of interest under Musk's control.