Analysts warn Tesla’s $280 price target and underperform rating reflect cash burn risks delaying a potential SpaceX merger.
BNP Paribas maintained its underperform rating on Tesla (TSLA) and a $280 price target, citing concerns over the company’s cash burn over the next two years. The firm highlighted that SpaceX’s projected $216 billion cash burn from 2026 to 2031 complicates any near-term merger plans.
Investor sentiment has improved on speculation of a Tesla-SpaceX merger, which some believe could deliver a takeout premium. However, regulatory risks and financial strain at both companies make the timeline uncertain.
The note did not detail immediate market reactions but underscored the challenges of aligning two high-cash-burn entities under current conditions.