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Tesla-SpaceX Potential Combination Could Boost Connectivity, Robotics, Autonomous Tech Position, RBC Says

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Tesla's (TSLA) potential combination with Space Exploration Technologies (SPCX) could strengthen its position across connectivity, robotics, and autonomous technologies, RBC Capital Markets said in a note emailed Tuesday.

The analysts said the potential deal would offer strategic benefits beyond traditional cost savings, with the Terafab chip collaboration being the clearest near-term opportunity by allowing Tesla and SpaceX to jointly develop custom chips for autonomous vehicles, Optimus robots, and artificial intelligence data centers.

Tesla's cash generation could support SpaceX while it remains free cash flow negative through at least 2030, and SpaceX's long-term growth could add value for Tesla shareholders as robotaxi and Optimus continue to mature, the analysts said.

The potential combination would form a compelling "vertical integration from orbit to ground" ecosystem that could be "difficult to replicate," the analysts added.

RBC lowered its price target on Tesla to $480 from $500 and reiterated its outperform rating.

Price: $307.37, Change: $-1.86, Percent Change: -0.60%

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