Tesla Price Target Boosted by Potential SpaceX Takeover Premium, RBC Says
Tesla's (TSLA) higher price target includes a premium from a potential all-stock acquisition scenario by SpaceX (SPCX), RBC Capital Markets said Tuesday. The brokerage raised its price target on Tesla's stock to $500 from $475 and maintained its outperform rating. Speculation of an impending merger intensified after SpaceX disclosed it spent at least $1 billion on Tesla batteries for its data centers and warned it may issue significant equity for future transactions, RBC said the "most likely structure" is SpaceX acquiring the electric vehicle maker at a 20% to 30% premium to drive operational collaboration across proprietary chip manufacturing, data center energy needs, and joint artificial intelligence training. The deal would increase Elon Musk's stake in the combined entity to more than 50%, according to the note. Excluding the potential transaction premium, Tesla's intrinsic value stands at $435 per share, reflecting a 20% increase to its robotaxi business balanced by valuation cuts to its humanoid and energy storage segments, RBC Analyst Tom Narayan said. "We believe robotaxi is currently Tesla's most robust opportunity," Narayan wrote,.
Tesla's (TSLA) higher price target includes a premium from a potential all-stock acquisition scenario by SpaceX (SPCX), RBC Capital Markets said Tuesday.
The brokerage raised its price target on Tesla's stock to $500 from $475 and maintained its outperform rating.
Speculation of an impending merger intensified after SpaceX disclosed it spent at least $1 billion on Tesla batteries for its data centers and warned it may issue significant equity for future transactions, RBC said the "most likely structure" is SpaceX acquiring the electric vehicle maker at a 20% to 30% premium to drive operational collaboration across proprietary chip manufacturing, data center energy needs, and joint artificial intelligence training.
The deal would increase Elon Musk's stake in the combined entity to more than 50%, according to the note.
Excluding the potential transaction premium, Tesla's intrinsic value stands at $435 per share, reflecting a 20% increase to its robotaxi business balanced by valuation cuts to its humanoid and energy storage segments, RBC Analyst Tom Narayan said. "We believe robotaxi is currently Tesla's most robust opportunity," Narayan wrote,.