TLDR
- SpaceX has filed for an IPO targeting a $2 trillion valuation by late June 2026
- Wedbush analyst Dan Ives predicts SpaceX and Tesla will merge into one company by 2027
- The SpaceX IPO filing mentions “Tesla” 87 times, highlighting deep operational ties
- Tesla owns roughly 19 million SpaceX shares, converted from its $2B xAI investment
- The two companies are jointly building a chip-making facility called Terafab
SpaceX has officially filed paperwork for its initial public offering, aiming for a $2 trillion valuation. As investors reviewed the filing, one detail stood out: the word “Tesla” appears 87 times throughout the document.
Dan Ives says there's an 80% to 85% chance SpaceX merges with Tesla in 2027
"Just take a step back. Why is there a trial with Musk and Altman. It really comes down to Anthropic, OpenAI, and then down here it's xAI. Data is the new oil and gold"
"You merge SpaceX and Tesla. From… pic.twitter.com/eeQBp5iLN5
— dank (@cptdankkk) May 21, 2026
That number has fueled speculation that the two companies, both led by Elon Musk, could one day merge into a single business.
Wedbush Securities analyst Dan Ives has been vocal about this possibility. “We continue to believe that SpaceX and Tesla will eventually merge into one company in 2027, with the groundwork already in place for both operations to become one organization,” Ives said.
Tesla stock rose 1.2% in premarket trading on Thursday, following a 3.3% gain on Wednesday.
How Tesla and SpaceX Are Already Connected
The financial ties between the two companies run deep. Tesla currently holds around 19 million SpaceX shares. That stake came from Tesla’s $2 billion investment in xAI, which was later converted to SpaceX shares after SpaceX acquired xAI earlier this year.
Beyond the equity, the companies share board members, keeping leadership aligned across both organizations.
Operationally, SpaceX has helped Tesla with purchasing power. Tesla, in turn, has supplied SpaceX with energy storage systems.
The two firms are also jointly developing Terafab, a high-tech chip-manufacturing facility. They are working on a shared digital AI assistant as well.
SpaceX is building a large network of orbital data centers. Tesla is focused on self-driving vehicles and humanoid robots. Both are spending tens of billions of dollars on AI.
Ives framed the logic this way: “Musk wants to own and control more of the AI ecosystem, and step by step, the holy grail could be combining SpaceX and Tesla in some way to give the connected tissue between both disruptive tech stalwarts looking to lead the AI Revolution.”
What a Merger Could Mean for Investors
A formal merger is not expected before the IPO closes. SpaceX is looking to raise $75 billion in the offering.
Wall Street analysts are divided on Tesla as a standalone investment. On TipRanks, Tesla currently carries a Hold consensus rating, based on 12 Buy ratings, 12 Hold ratings, and five Sell ratings.
The average 12-month price target for Tesla sits at $403.86, which implies around 3.2% downside from current levels.
Still, the growing operational overlap between the two companies is difficult to ignore. The Terafab facility and shared AI projects point to an integration that is already underway in practical terms.
Whether a formal merger follows remains to be seen. For now, investors are watching the SpaceX IPO closely as the next major signal.
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