--- title: "Tesla stock price in focus as Morningstar says a SpaceX merger makes strategic sense" description: "Morningstar sees a fit between Tesla's energy and robotics units and SpaceX's AI and satellite services, but approvals are still needed and its view of…" url: https://business-finance.skoop.news/tesla-spacex-merger-does-make-strategic-sense-analyst-says-b--11-02/ published: 2026-11-03T03:34:29.547868-05:00 modified: 2026-11-03T03:34:29.547868-05:00 section: "Business & Finance" publisher: "skoop.news" language: en keywords: ["tesla stock price", "Dan Levy", "Dan Ives", "Tesla", "SpaceX", "Musk", "Morningstar", "business"] hashtags: ["#DanLevy", "#DanIves", "#Tesla", "#Business", "#entrepreneur"] image: https://thumb.wikimedia.org/wikipedia/commons/thumb/f/f3/Barclays%2C_Market_Place%2C_Pontefract_%2825th_April_2019%29_002.jpg/1280px-Barclays%2C_Market_Place%2C_Pontefract_%2825th_April_2019%29_002.jpg?utm_source=commons.wikimedia.org&utm_campaign=imageinfo&utm_content=thumbnail --- # Tesla stock price in focus as Morningstar says a SpaceX merger makes strategic sense > Morningstar sees a fit between Tesla's energy and robotics units and SpaceX's AI and satellite services, but approvals are still needed and its view of SpaceX shares is cautious. Published 2026-11-03 · Business & Finance, [skoop.news](https://skoop.news/) ## In brief - Morningstar said a Tesla-SpaceX merger does make strategic sense, and it outlined how Tesla's energy and robotics businesses could work alongside SpaceX's AI and satellite services [[1]](https://stocktwits.com/news-articles/markets/equity/tesla-spacex-merger-strategic-sense-analyst-says-spacex-needs-2x-growth/cZUhgVVR9Rm). - A Morningstar analyst said Tesla could become a key battery and solar supplier to SpaceX [[1]](https://stocktwits.com/news-articles/markets/equity/tesla-spacex-merger-strategic-sense-analyst-says-spacex-needs-2x-growth/cZUhgVVR9Rm). - Musk disclosed the proposed merger during a call with analysts on Tuesday while discussing SpaceX's third-quarter results [[2]](https://www.latimes.com/business/story/2026-10-22/behind-elon-musks-plans-for-mega-merger-of-spacex-tesla). ## What Morningstar said Morningstar said a Tesla-SpaceX merger does make strategic sense, and it outlined how Tesla's energy and robotics businesses could work alongside SpaceX's AI and satellite services [[1]](https://stocktwits.com/news-articles/markets/equity/tesla-spacex-merger-strategic-sense-analyst-says-spacex-needs-2x-growth/cZUhgVVR9Rm). The view matters to anyone who holds Tesla or SpaceX shares, or who follows either stock. Not every reaction is as measured. Dan Ives called a SpaceX merger with Tesla a strategic no brainer for Musk and the SpaceX ecosystem [[2]](https://www.latimes.com/business/story/2026-10-22/behind-elon-musks-plans-for-mega-merger-of-spacex-tesla). ## How the pieces could fit A Morningstar analyst said Tesla could become a key battery and solar supplier to SpaceX [[1]](https://stocktwits.com/news-articles/markets/equity/tesla-spacex-merger-strategic-sense-analyst-says-spacex-needs-2x-growth/cZUhgVVR9Rm). The same analyst said Grok could serve as an interface for Tesla's autonomous-driving software and humanoid robots [[1]](https://stocktwits.com/news-articles/markets/equity/tesla-spacex-merger-strategic-sense-analyst-says-spacex-needs-2x-growth/cZUhgVVR9Rm). Starlink could connect Tesla's products and let Tesla monitor its vehicles and robots [[1]](https://stocktwits.com/news-articles/markets/equity/tesla-spacex-merger-strategic-sense-analyst-says-spacex-needs-2x-growth/cZUhgVVR9Rm). Barclays analyst Dan Levy described the rationale as an AI vertical integration play [[2]](https://www.latimes.com/business/story/2026-10-22/behind-elon-musks-plans-for-mega-merger-of-spacex-tesla). In his description, Tesla's vehicles, robotaxis and robots would benefit from SpaceX's AI infrastructure, including Grok [[2]](https://www.latimes.com/business/story/2026-10-22/behind-elon-musks-plans-for-mega-merger-of-spacex-tesla). On the supply side, Tesla said its Energy business is nearly sold out for 2027 given robust demand from data centers [[3]](https://www.cnbc.com/2026/10/26/tesla-spacex-merger-barclays.html). Musk said the companies must determine the split between SpaceX and Tesla for who pays for what at Terafab [[1]](https://stocktwits.com/news-articles/markets/equity/tesla-spacex-merger-strategic-sense-analyst-says-spacex-needs-2x-growth/cZUhgVVR9Rm). ## How the idea surfaced Musk disclosed the proposed merger during a call with analysts on Tuesday while discussing SpaceX's third-quarter results [[2]](https://www.latimes.com/business/story/2026-10-22/behind-elon-musks-plans-for-mega-merger-of-spacex-tesla). Musk said last week that a Tesla-SpaceX merger would be a good idea [[3]](https://www.cnbc.com/2026/10/26/tesla-spacex-merger-barclays.html). Committees at both companies have been formed to discuss a potential combination [[3]](https://www.cnbc.com/2026/10/26/tesla-spacex-merger-barclays.html). Musk said his conflicts keep him out of the independent committees' talks on a merger [[1]](https://stocktwits.com/news-articles/markets/equity/tesla-spacex-merger-strategic-sense-analyst-says-spacex-needs-2x-growth/cZUhgVVR9Rm). He also said a merger is not a certainty and that the shareholders have to be supportive of it [[2]](https://www.latimes.com/business/story/2026-10-22/behind-elon-musks-plans-for-mega-merger-of-spacex-tesla). ## Approvals and valuation A Tesla merger would need support from holders of 50% of all shares [[1]](https://stocktwits.com/news-articles/markets/equity/tesla-spacex-merger-strategic-sense-analyst-says-spacex-needs-2x-growth/cZUhgVVR9Rm). SpaceX requires approval from its special committee, board and controlling shareholder [[1]](https://stocktwits.com/news-articles/markets/equity/tesla-spacex-merger-strategic-sense-analyst-says-spacex-needs-2x-growth/cZUhgVVR9Rm). Morningstar was more cautious on price. It said investors buying SpaceX stock would need to assume growth well above its model, with growth nearly doubling its modeled rate just to reach fair value [[1]](https://stocktwits.com/news-articles/markets/equity/tesla-spacex-merger-strategic-sense-analyst-says-spacex-needs-2x-growth/cZUhgVVR9Rm). Barclays analyst Dan Levy said a combination with SpaceX is heavily expected and should drive upside for Tesla stock [[3]](https://www.cnbc.com/2026/10/26/tesla-spacex-merger-barclays.html). Stocktwits retail sentiment for TSLA and SPCX was bearish, with message volume normal for TSLA and low for SPCX [[1]](https://stocktwits.com/news-articles/markets/equity/tesla-spacex-merger-strategic-sense-analyst-says-spacex-needs-2x-growth/cZUhgVVR9Rm). ## What it means for you If you own Tesla shares, a deal would need support from holders of 50% of all shares [[1]](https://stocktwits.com/news-articles/markets/equity/tesla-spacex-merger-strategic-sense-analyst-says-spacex-needs-2x-growth/cZUhgVVR9Rm). If you own or are considering SpaceX stock, Morningstar said you would need to assume growth well above its model to reach fair value [[1]](https://stocktwits.com/news-articles/markets/equity/tesla-spacex-merger-strategic-sense-analyst-says-spacex-needs-2x-growth/cZUhgVVR9Rm). You can watch the committees at both companies, which have been formed to discuss a potential combination [[3]](https://www.cnbc.com/2026/10/26/tesla-spacex-merger-barclays.html). Musk has said a merger is not a certainty and depends on shareholder support [[2]](https://www.latimes.com/business/story/2026-10-22/behind-elon-musks-plans-for-mega-merger-of-spacex-tesla). ## Sources 1. [Tesla-SpaceX Merger ‘Does Make Strategic Sense,’ Analyst Says — But SpaceX Needs Nearly 2x The Growth](https://stocktwits.com/news-articles/markets/equity/tesla-spacex-merger-strategic-sense-analyst-says-spacex-needs-2x-growth/cZUhgVVR9Rm) — stocktwits.com 2. [Behind Elon Musk's plans for a mega-merger of SpaceX and Tesla](https://www.latimes.com/business/story/2026-10-22/behind-elon-musks-plans-for-mega-merger-of-spacex-tesla) — Los Angeles Times 3. [Buy Tesla ahead of potential SpaceX merger, says Barclays](https://www.cnbc.com/2026/10/26/tesla-spacex-merger-barclays.html) — CNBC Image: Photo: Mtaylor848 / Wikimedia Commons, CC BY-SA 4.0 (https://commons.wikimedia.org/wiki/File:Barclays,_Market_Place,_Pontefract_(25th_April_2019)_002.jpg) --- Written from the sources above and checked twice (rules and an independent model) before publishing. How we work: https://skoop.news/how-we-work/ · Corrections: https://skoop.news/corrections/