Svmuu News: Rajat Gupta, an analyst at JPMorgan Chase, said that while a merger between Tesla and SpaceX “makes sense on paper,” current speculation surrounding the merger underestimates the potential obstacles that could hinder the deal.Gupta said the merger would enable CEO Elon Musk to “combine the vision, mission, and engineering leadership of the two platforms,” and that the companies’ shared AI ambitions would serve as a “potential strategic glue.”Gupta noted that potential obstacles include regulatory approvals across multiple jurisdictions, governance and voting rights symmetry, and the perception that “the merger would be an SPCX-led acquisition rather than a merger of equals.”
Gupta added that JPMorgan Chase will monitor SPCX’s acquisition currency, the regulatory landscape, and Musk’s voting rights at Tesla as potential catalysts signaling a looming merger. JPMorgan Chase stated that if a deal were to occur, the most likely structure would be a SpaceX-led, all-stock acquisition of Tesla. Gupta noted that this transaction structure could best bridge the valuation gap and avoid a large cash outlay. Gupta rates Tesla as “Neutral” with a price target of $475.