Tesla Hits 1-Month Low at $396.68 on SpaceX Merger Jitters; Morningstar Sees Tesla Getting 66% of Deal

On Tuesday, Tesla (TSLA) shares fell 3% to close at $396.68, hitting a one-month low amid speculation about a potential merger with SpaceX ahead of Friday's blockbuster IPO. SpaceX is seeking to raise $75 billion at a $1.8 trillion valuation, with investor demand reportedly surpassing $250 billion.

According to Morningstar, Tesla shareholders could emerge as the winners in any deal, estimating a 66%-34% equity split favoring Tesla. The research firm cited the companies' growing ties through AI initiatives, chip development and infrastructure projects, as well as Tesla's reluctance to accept valuations below SpaceX's IPO price. Kalshi traders currently predict a 50% chance of a merger before May 2027.