BNP Paribas: Tesla's merger with SpaceX is far from over

On 9 July, BNP Paribas analysts expressed doubts about the possibility of a recent merger between Tesla and SpaceX. They stated that “the large cash consumption and significant regulatory risks of the two companies complicated the potential merger of SpaceX and Tesla”. The improved mood of Tesla investors as a result of merger speculation may be overly optimistic and maintain their “lower than large” rating and the target price of $280. “We are concerned that Tesla will face a difficult KPI in its unmanned taxi and Optimus operations over the next two years, which will entail downside risks for core operations until any SpaceX merger is actually realized.”