NEW YORK—Elon Musk told analysts on Tesla's latest earnings call that a merger with privately held SpaceX was "not a topic for an earnings call," dismissing long-running investor speculation and shifting the narrative back to Tesla's core automotive and AI businesses. Tesla stock trades at $374.01, down 1.3 percent on the day, as the market digests the comments alongside broader tech sector weakness.
The idea of combining Tesla with SpaceX has circulated among investors who envision an integrated enterprise spanning electric vehicles, AI, energy storage and space technology. Proponents argue a merger could unlock new revenue streams and intellectual property synergies in advanced manufacturing, battery technology and autonomous systems. Such a deal would create a company with a market capitalization potentially exceeding $1.5 trillion, based on current private valuations for SpaceX.
With that option off the table for now, investors should focus on Tesla's established growth vectors and upcoming product cycles. The Cybertruck production ramp, a next-generation vehicle platform and advances in Full Self-Driving software are the near-term catalysts that matter. Tesla continues to invest heavily in AI infrastructure, with significant orders for Nvidia (NVDA) H100 GPUs to support autonomous driving and robotics development.
Tesla's energy storage division deserves more attention than it typically receives. The segment deployed 4.1 GWh in Q2 2026, a 60 percent year-over-year increase, and is becoming a durable non-automotive revenue driver. Megapack and Powerwall sales carry higher margins than vehicles and reduce Tesla's exposure to an increasingly competitive EV market.
The absence of a SpaceX catalyst means Tesla's valuation rests entirely on its ability to execute in EVs and energy. The company faces growing competition globally from both legacy automakers and new entrants, making cost control and operational discipline more critical than ever. Q3 2026 delivery numbers, due in early October, are the next hard data point. JPMorgan maintains a $400 price target on TSLA, contingent on consistent margin expansion and volume growth from existing product lines.
