Tesla (tsla) Seen Trading More Like a Spacex Proxy as Merger Talk Grows

Tesla, Inc. (NASDAQ:TSLA) is one of the 15 AI Stocks Analysts Are Watching: Microsoft, Nvidia, and More. On June 22, Jefferies reiterated the stock as hold and raised its price target to $375 per share from $350 The firm has cautioned that Tesla may begin trading mo

Tesla, Inc. (NASDAQ:TSLA) is one of the 15 AI Stocks Analysts Are Watching: Microsoft, Nvidia, and More.

On June 22, Jefferies reiterated the stock as hold and raised its price target to $375 per share from $350

The firm has cautioned that Tesla may begin trading more like a SpaceX proxy as merger speculation builds. Tesla shares did not sell off ahead of the SPCX IPO or since. Consensus that a merger will be next and soon may turn TSLA into a tracker as shareholders try to minimize stake dilution.

They noted how a merger may change how investors view Tesla. Instead of focusing on Tesla’s main businesses, they may begin to treat TSLA as a way to gain exposure to SpaceX. A day later, on June 23, Baird reiterated the stock as “Outperform” and said it’s sticking with Tesla and sees a SpaceX merger “sooner rather than later.” With the deal now complete, we believe focus will shift to a potential merger between the two entities, and we see this as likely to happen sooner rather than later.

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