Tesla and SpaceX are two of Elon Musk’s most popular and notable companies, but a new note from one Wall Street analyst claims the two companies will become one sometime next year, as 2027 could see the dawn of a new horizon.<\/p>\n
In a bold new research note, Wedbush analyst Dan Ives<\/a> has reaffirmed his long-standing prediction: Tesla and SpaceX will merge in 2027.<\/p>\n The move, Ives argues, is no longer a distant possibility but a logical next step, fueled by deepening operational ties, shared AI ambitions, and Elon Musk\u2019s vision for dominating the next era of technology.<\/p>\n He writes:<\/p>\n “Still Expect Tesla and SpaceX to Merge in 2027. We continue to believe that SpaceX and Tesla will eventually merge into one company in 2027 with the groundwork already in place for both operations to become one organization. Tesla already owns a stake in SpaceX after the company\u2019s $2 billion investment in xAI got converted to SpaceX shares following SpaceX\u2019s acquisition of xAI earlier this year initially tying both of Musk\u2019s ventures closer together but still represents <1% of SpaceX\u2019s expected valuation. The recent announcement of a joint Terafab facility between SpaceX and Tesla further ties both operations together making it more feasible to merge operations given the now existing overlap being built out across the two with this the first step.”<\/em><\/p>\n The groundwork is already being laid. Earlier this year, SpaceX acquired xAI, converting Tesla\u2019s $2 billion investment in the AI startup into a small equity stake, less than 1 percent, in SpaceX.<\/p>\n Regulatory filings cleared the transaction in March 2026, formally linking the two Musk-led companies financially for the first time. Then came the announcement of a joint TERAFAB facility<\/a> in Austin, Texas: two advanced chip factories, one dedicated to Tesla\u2019s AI needs for vehicles and Optimus robots, the other targeting space-based data centers.<\/p>\n