Tesla Investors Could Be in for a Treat If a SpaceX Merger is on the Table

Even with the more recent turbulence, shares of Tesla (NASDAQ:TSLA) have been making up for lost time in the past six months, up close to 40%. Thank the robotaxi opportunity and the rise of the Optimus humanoid robot, which is reportedly poised to go into production in the coming months after the firm announced its plans to discontinue its Model S and X electric vehicles (EVs).

There’s a lot of hype surrounding Cybercab and Optimus. As robotaxis continue to roll out throughout the year, while Elon Musk looks to make home robots a reality by the end of 2027, it feels like Tesla stock is the ultimate physical AI play. Perhaps quarterly results and EV sales matter less as investors focus on the new growth drivers that might transform the world.

Musk has a reputation for being a bit early when it comes to technological trends. As such, investors might want to be patient with Optimus, especially since having such humanoid robots in homes by the end of next year seems a tad aggressive. If Tesla’s humanoid robot is, in fact, really ready to enter the consumer market next year, perhaps the hefty multiple on shares is more than warranted.

Undoubtedly, there are great rewards that come with being the first mover in robotics, especially if the technology is something that “everyone on Earth” will want in their homes eventually. Though time will tell if Optimus is ready to be useful enough to justify loosening the purse strings, I certainly wouldn’t bet against Tesla, especially on the more-recent weakness.

But what’s more exciting than robots and self-driving vehicles? How about reusable rockets?

With big rumors swirling around the potential for SpaceX to merge with Tesla or xAI, Tesla shareholders may very well be able to gain exposure to one of the most sought-after private companies without having to lift a finger. Of course, there’s potential for Tesla shares to go into overdrive should such a merger ever come to fruition. 

In any case, Tesla, as it is, already looks like one of the most powerful baskets of physical AI products out there. There’s a reason shares go for a big, fat premium to the market, with a price-to-earnings (P/E) multiple that’s now just shy of 400 times. Of course, a SpaceX-Tesla or SpaceX-xAI merger isn’t guaranteed. There are still a lot of wrinkles to be ironed out, and even then, shares of Tesla have already had the opportunity to digest the news.

In the meantime, the latest merger speculation, I believe, has made a hyped stock that much more exciting, but, at the same time, not every sell-side analyst out there is pounding the table on shares.

It might be too late to buy the merger news, but shares still look like a great long-term growth bet

The stock is getting up there in valuation, but believers in Musk may very well have a front-row seat to the next biggest trends in the AI scene. Beyond the massive total addressable markets (TAMs) for robotaxis and home robots, there’s the Musk factor, which alone is worth paying up for, even if the man does tend to be just a bit early on some things.

At the end of the day, if there’s someone who can convince the masses that the wait will be worth it, it’s Musk. And given how much is on the line with robotics and robotaxis, I’d argue that a delay or two probably won’t be met with a big negative reaction, given just how difficult the problems Tesla is aiming to solve. If SpaceX ends up being rolled in, there will be yet another exciting business to keep investors buckled in for the long haul, with hopes that Tesla can begin its ascent to the moon. 

Personally, I’ll be sitting on the sidelines, but I don’t think this is the last we’ll hear rumors of a potential merger with another Elon Musk company.