- SPCX
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A combined SpaceX (SPCX) and Tesla (TSLA) would haul in some serious coin, Cathie Wood’s Ark Invest said in a new note.
The Elon Musk bull‘s firm estimated that SpaceX and Tesla could generate $3.8 trillion in sales and $2.7 trillion in operating profits by 2031, with SpaceX contributing roughly 62% and 69%, respectively.
To get a sense of how bullish a call this is, Yahoo Finance data shows that Wall Street analysts expect SpaceX to post $43 billion in sales this year, while Tesla clocks in at $107 billion.
“While our model assesses Tesla as a standalone business, a SpaceX-Tesla merger could take place within the next five years,” the Ark Invest team said. “Tesla’s highly cash-generative robotaxi network could help fund SpaceX’s ambitious plans for orbital data centers, and at the same time SpaceX’s compute-intensive frontier AI models could serve as the planning layer for Optimus deployments. Working together on the Terafab project, both companies could alleviate chip constraints.”
It has been an eventful few weeks for CEO Elon Musk as chatter heats up about a merger between SpaceX and Tesla.
Musk said on Monday he would give one share of SpaceX stock to every kid in America in 2027. The shares will reportedly find their way into Trump Accounts.
This comes on the heels of Tesla unveiling its flying Tesla Roadster last week, which uses SpaceX thrusting power.
“We believe this is a small example of the synergies between Tesla and SpaceX and we believe there is an 80% chance that Tesla and SpaceX merge by the end of 2027 for a number of strategic AI/data driven reasons,” Yorkville Ives partner Dan Ives said.
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Brian Sozziis Yahoo Finance’s Executive Editor, host of theSozzi Unleashedmorning show and thePower Players with Brian Sozzipodcast, and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X@BrianSozzi,Instagram, andLinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
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