Tesla and SpaceX Merger Speculation Heats Up and Elon Musk Tries to Cool It Off
The Wall Street Journal reports Tesla is considering selling its China business to facilitate a future merger with SpaceX.
The Wall Street Journal reports Tesla is considering selling its China business to facilitate a future merger with SpaceX.
IBD's Alexis Garcia and Ed Carson preview key upcoming earnings reports from Eli Lilly, Sandisk and SpaceX. Check out our daily newsletter!
As important as June was for SpaceX (NASDAQ: SPCX), July has solidified itself as featuring multiple milestones, of which the fall to a new all-time low of $107.01 and a decisive plunge below the initial public offering (IPO) price are arguably the most important.
Tesla stock rose by over 3.5% on Thursday and continued those gains in the extended hours after details of the potential merger with SpaceX emerged. TSLA hit a high of $315, up modestly from this week's low of $296.
Bill Ackman says the most common thought on Wall Street is to never bet against Elon Musk. SpaceX's current valuation limits its upside and increases the chance of a pullback.
Tesla executives have been told to prepare for a separation of its China business ahead of potential merger with SpaceX , the Wall Street Journal reported on Thursday, citing a person familiar with the talks.
The U.S. automaker could sell or spin off the business in its second-largest market over geopolitical concerns.
Fox News real estate contributor Katrina Campins discuss how newly minted SpaceX IPO millionaires are dramatically impacting luxury housing markets and how quality of life is driving real estate on 'Varney & Co.' 00:00 - SpaceX millionaires flood the market 00:44 - The "August 6th" luxury cash-out 01:45 - Moving stock market gains into real assets 02:14 - Why buyers are fleeing California for Florida 03:10 - The shift toward "simple living" and space 04:02 - Luxury vs. Middle-Class housing inventory
The more this stock deflates, the better the long-term potential becomes.
SpaceX just landed a $1.6 billion U.S. Space Force contract for 18 Falcon 9 missions, averaging roughly $89 million per launch through the end of 2027. The contract provides a modest revenue boost, but it doesn't address the bigger concerns weighing on the stock: extreme valuation, looming lockup expirations, and losses.
SpaceX is one of the biggest businesses in the world by market cap. Rocket Lab is an up-and-coming full-service space-solutions provider that enjoyed nearly 64% year-over-year sales growth in the first quarter.
Robinhood Markets Inc. (NASDAQ:HOOD) added nearly 1 million funded customers during the second quarter—its biggest quarterly increase in almost five years—and executives said Space Exploration Technologies Corp. (NASDAQ:SPCX) blockbuster IPO was one of the key drivers behind the surge.
SpaceX and Tesla shares have declined, leading to losses for some of Elon Musk's biggest supporters.
Investors must assess how much Starlink, Starship, and AI success is already reflected in SpaceX's valuation.
After a 30% drop in less than a month, it's fair to say that Wall Street is more divided on Tesla Inc. NASDAQ: TSLA than it has been in years. The company's latest earnings report, released last week, delivered a jarring split between record headline revenue and a sharp deterioration in profitability, and the market has been trying to make sense of it in the days since.
SPCX heads into its first public earnings report amid a 16.6% post-IPO drop, Starship progress and concerns over valuation, debt and AI expansion.
Tesla, Inc. remains a hold despite a 27% correction, as extended capex commitments signal a multi-year build phase and near-term cash flow pressures. SpaceX, aka Space Exploration Technologies Corp., is favored for starter buy positions pre-Q2, offering concentrated autonomy and AI exposure, thematic purity, and a compelling narrative-driven growth path. TSLA's financials are pressured by capex and operational weakness, while SpaceX's valuation hinges on achieving ~$39B in 2026 revenue and sustaining its innovation narrative.
Alphabet's huge earnings beat is sending S&P 500 earnings growth soaring.
Both Rocket Lab and SpaceX have rapidly falling share prices. The companies are very similar in their growth potential.
The U.S. Space Force bought 18 SpaceX Falcon 9 launches for about $89 million apiece.