RBC Capital Markets says SpaceX could acquire Tesla for $480 per share, creating a combined company worth $3.74 trillion. Tesla shareholders would receive 48% of the merged business, down from 54% in the bank's July calculations. The hypothetical offer price has not changed.
RBC analyst Tom Narayan modeled a combined company worth $3.31 trillion in July. SpaceX's rising valuation has changed the ownership calculation. RBC's latest research note gives SpaceX shareholders 52% of the combined company. The revised calculation gives SpaceX investors roughly $422 billion more in implied value. Tesla shareholders' stake remains worth about $1.8 trillion.
RBC's $480 valuation represents a roughly 30% premium for Tesla investors. Tesla shareholders would receive SpaceX shares rather than cash under the hypothetical all-stock deal. The final value would depend on the companies' share prices and the terms of any agreement. RBC sees potential benefits from combining Tesla's robotics and manufacturing operations with SpaceX's AI infrastructure, including the companies' Terafab semiconductor ambitions. RBC says the bank has no knowledge of an actual transaction.
Elon Musk, asked in September why Tesla and SpaceX remained separate, called the question a "great question" and invited listeners to imagine Musk's possible action given the companies' growing collaboration. Future Fund managing partner Gary Black warned Tesla investors last week that arbitrage traders could erode any takeover premium paid in SpaceX shares. Black argued that investors could value the combined company using Tesla's lower valuation multiple. Black also argued that merger arbitrage trading could reduce the premium before a deal closes. Barclays analyst Dan Levy suggested last week that an announcement could arrive before Tesla's Dec. 3 shareholder meeting.
Polymarket traders put the probability of an official announcement by Dec. 31 at 18%. Polymarket traders put the probability at 64% by the end of 2027. The market has attracted over $1.4 million in trading volume.
Tesla shares rose over 3% to $367. SpaceX shares gained over 2% to $150. SpaceX reports earnings on Tuesday, Oct. 20. Tesla reports earnings on Wednesday, Oct. 21.
RBC Suggests SpaceX Could Acquire Tesla at $480 Per Share
BenzingaShare
Summary
RBC Capital Markets suggests SpaceX could acquire Tesla at $480 per share, forming a $3.74 trillion entity. Tesla shareholders would own 48%, SpaceX 52%. The all-stock deal highlights synergies in robotics, AI, and Terafab. Altcoins to watch may react to such a move in the crypto market. RBC notes SpaceX’s value adds $422 billion for its investors. The bank confirms no actual transaction is known.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.