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The leader of Morgan Stanley’s global auto research team said Tuesday he can foresee a Tesla and SpaceX merger in the future.
The firm’s Adam Jonas wrote in a report that “investors widely expect Elon Musk to, over time, devote increasing amounts of his time and talents to SpaceX, raising the very real question of who could replace him at Tesla. A combination of efforts between the two firms could address this important issue.”
Jonas said he expects the automotive market to become increasingly competitive and Tesla will be battling companies with much larger war chests. He sees potential for SpaceX to become highly profitable, giving Tesla the capital it needs to support its ambitious plans.
There’s also a bit of history around Musk combining company efforts, such was the case when Tesla acquired SolarCity. Jonas wrote that “the willingness of Tesla leadership to undertake strategic actions to consolidate its separate interests in the interest of both financial sustainability and technological overlap“ could be replicated with a Tesla/SpaceX deal.
Musk carried out some promotion of both companies over the weekend when he said SpaceX’s Falcon Heavy rocket will transport his Tesla Roadster on its maiden voyage.