BNP Paribas analysts expressed skepticism about the recent possibility of a merger between Tesla and SpaceX, stating: “The substantial cash burn and significant regulatory risks associated with both companies complicate a potential merger between SpaceX and Tesla.”
Investor sentiment toward Tesla, buoyed by merger speculation, may be overly optimistic, and the firm maintains its “underperform” rating and $280 target price.“We are concerned that Tesla will face challenging KPIs over the next two years for its autonomous taxi and Optimus businesses, posing downside risks to its core operations before any SpaceX merger is actually realized.”[Odaily]