Rumors that Tesla and SpaceX might merge have been gaining traction on X over the past couple of days.
It started with a report last Wednesday by Barclays analyst Dan Levy, who said an announcement could come as early as before Tesla’s shareholder meeting on December 6. The most likely scenario, he said, would be SpaceX acquiring Tesla in a stock-for-stock deal.
Based on market caps of about $2.1 trillion and $1.5 trillion, respectively, each Tesla share would be worth roughly 0.7 SpaceX shares, before any premium.
But the stock has continued to weaken.
TSLA rose about 4.7% on October 2, the day delivery figures beat expectations, but closed at $354.72 on the 16th, giving back nearly all of those gains. It’s down about 21% year to date.
The CNN Fear & Greed Index fell to 18 last Friday, putting the broader U.S. stock market in extreme fear territory.
For now, the merger is only an analyst’s speculation, and neither company has made an official announcement. In this climate, rumors alone are unlikely to prop up the stock.
The real test is this week’s two earnings calls. SpaceX goes first at 4:30 a.m. Beijing time on Wednesday, followed by Tesla at 5:30 a.m. Thursday.
The market expects Tesla to report third-quarter revenue of around $28 billion and adjusted earnings per share of $0.44, down more than 10% year over year.
I’ll be watching closely to see how Musk responds to the merger rumors and whether automotive gross margins continue to decline.
$TSLA
#特斯拉 #USStocks
It started with a report last Wednesday by Barclays analyst Dan Levy, who said an announcement could come as early as before Tesla’s shareholder meeting on December 6. The most likely scenario, he said, would be SpaceX acquiring Tesla in a stock-for-stock deal.
Based on market caps of about $2.1 trillion and $1.5 trillion, respectively, each Tesla share would be worth roughly 0.7 SpaceX shares, before any premium.
But the stock has continued to weaken.
TSLA rose about 4.7% on October 2, the day delivery figures beat expectations, but closed at $354.72 on the 16th, giving back nearly all of those gains. It’s down about 21% year to date.
The CNN Fear & Greed Index fell to 18 last Friday, putting the broader U.S. stock market in extreme fear territory.
For now, the merger is only an analyst’s speculation, and neither company has made an official announcement. In this climate, rumors alone are unlikely to prop up the stock.
The real test is this week’s two earnings calls. SpaceX goes first at 4:30 a.m. Beijing time on Wednesday, followed by Tesla at 5:30 a.m. Thursday.
The market expects Tesla to report third-quarter revenue of around $28 billion and adjusted earnings per share of $0.44, down more than 10% year over year.
I’ll be watching closely to see how Musk responds to the merger rumors and whether automotive gross margins continue to decline.
$TSLA
#特斯拉 #USStocks