Tesla-SpaceX Merger Math Gets RBC View

RBC Capital Markets suggests that a hypothetical merger between Tesla and SpaceX, valued at $3.31 trillion with Tesla shareholders owning 54%, could create a powerful orbit-to-ground AI ecosystem. Analyst Tom Narayan sees a potential for over $1 trillion in semiconductor cost savings by 2050 through cooperation on the Terafab chip project. Despite the strategic advantages, the high capital requirements, supply constraints, differing operating models, and SpaceX's recent share price drop present significant challenges to such a merger.