Wall Street largely expects Tesla and SpaceX to combine, but analysts are divided over what the deal would cost, Reuters reported on Wednesday, 21 October 2026.
According to Reuters, the view that a merger is inevitable has taken hold among investors, while the price remains an open question. Among the estimates circulating, JPMorgan sees SpaceX acquiring Tesla at a premium of up to 35%, TradingKey reported, adding that the bank projected the stock could rebound to $420.
Coverage of the possible tie-up has widened beyond valuation. The BBC examined why Elon Musk would want to bring the two companies together, and Benzinga reported that Tesla's business in China could pose the biggest obstacle to a combination. XTB.com noted that preparations for what it called a mega-merger were underway, in a market update that also flagged a diplomatic standoff with Iran as a drag on sentiment.
The reporting does not establish that a transaction has been agreed or formally proposed. The discussion rests on market expectations and analyst estimates rather than confirmed deal terms.
What to watch next: whether Tesla or SpaceX confirms any transaction, and how the China question and the premium are addressed if talks become official.
