Tesla shares slip as Musk gives no new details on a possible SpaceX merger

what happened

On Wednesday, during the third-quarter earnings call, Tesla did not take questions on a possible combination with SpaceX. Investor relations head Travis Axelrod said: "We will not be addressing any questions today on a potential merger with SpaceX." The report was published by Dow Jones Newswires, which carried content from MarketWatch.

Tesla shares rose 3.4% in the regular session but lost nearly all of that gain after the close. Earlier, Elon Musk said talks between the two companies' boards were at an early stage and a deal was not certain. Tesla's market value is about $1.48 trillion, while SpaceX is worth roughly $2 trillion.

CFRA analyst Garrett Nelson said investor focus has shifted from cash burn tied to a large capital spending cycle toward a possible merger, and he expects one by the end of 2027. Barclays analyst Dan Levy said a deal could speed up work on Terafab, an expensive chip plant planned in Austin, Texas, where Tesla expects to begin commissioning equipment in 2027.

why it matters

The market is focusing less on the quarterly numbers and more on a possible deal that remains unconfirmed. Until management gives details, Tesla's stock may keep reacting sharply to any comment from its leadership.

market impact

Tesla and SpaceX: merger uncertainty and chip spending drive sentiment in TSLA shares.

tags

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