Tesla, SpaceX May Merge by 2027 With $3 Trillion Valuation Amid Regulatory Hurdles

According to CNN and JPMorgan Chase analyst Rajat Gupta, on July 22, Tesla and SpaceX could merge by 2027, with tech analyst Dan Ives predicting over 80% probability. A combined entity could reach approximately $3 trillion in valuation, comparable to Microsoft. The merger would unify both companies' vision, engineering management, and AI operations, while potentially increasing Musk's control—he holds over 80% voting rights at SpaceX but only about 20% in Tesla.

However, the potential deal faces regulatory obstacles. Gupta noted that Tesla operates major factories in China with significant sales and profits, while SpaceX maintains close ties with the U.S. government. Additionally, both companies' valuations depend heavily on market confidence in Musk, and consolidation could concentrate these risks further.