Tesla Inc: SPCX-TSLA Combination Thoughts: Strategically Coherent; Regulatory Challenges and SPCX Acquisition Currency Key to Watch

Research evidence excerpt

Tesla Inc: SPCX-TSLA Combination Thoughts: Strategically Coherent; Regulatory Challenges and SPCX Acquisition Currency Key to Watch

J P M O R G A N North America Equity Research

07 July 2026

Tesla Inc

SPCX-TSLA Combination Thoughts: Strategically Neutral

Coherent; Regulatory Challenges and SPCX TSLA, TSLA US

Acquisition Currency Key to Watch Price (06 Jul 26):$419.77

Autos & Auto Parts

We see the possibility of a SpaceX-Tesla combination as strategically coherent on Rajat Gupta AC

paper, allowing CEO Musk to unify vision, mission, and engineering leadership (1-212) 622-6382

across both platforms. This includes vertical integration across AI, robotics, rajat.gupta@jpmorgan.com

energy, transportation, & space, anchored by Terafab & a combined ~$28.5T TAM Jash Patwa

narrative on the SPCX side (see JPM initiation this morning). In addition, SPCX’s (1-212) 622-5472

record IPO furnishes a high-value acquisition currency. That said, we think recent jash.patwa@jpmchase.com

press reports understate the practical bottleneck of securing multi-jurisdictional Yash Beswala

regulatory approvals, especially in markets where TSLA has meaningful (1-212) 622-0028

yash.beswala@jpmchase.com

manufacturing exposure. China could be a particular hurdle given the potential

Internet - Large Cap / Mid & Small

national security sensitivities created by SPCX’s defense/U.S. government ties, Cap

the absence of Starlink approval in China, and TSLA’s large, profitable China AC Doug Anmuth

manufacturing footprint – key dynamics that are at odds with each other. Other

(1-212) 622-6571

hurdles include governance/voting symmetry given Musk controls ~85% of SPCX douglas.anmuth@jpmorgan.com

voting power but only 20% of TSLA’s, as well as the perception that a combination J.P. Morgan Securities LLC