Barclays analysts see AI-driven Tesla-SpaceX merger looming before AGM

Barclays analysts, headed by Dan Levy, have warned that Tesla’s upcoming annual general meeting may feature a proposal to merge with SpaceX, highlighting the strategic advantage of merging their AI technologies. While modest financial synergies are anticipated, the analysts argue that the true upside lies in vertically integrating the artificial-intelligence systems used by both companies. Existing collaborations already link the two firms: SpaceX has bought over $100 million in Cybertrucks, xAI relies on Tesla’s utility-scale batteries, and both are co-developing the Terafab semiconductor line for vehicles, robots and orbital AI satellites.

The analysts also flag that any merger would need approval from shareholders of both companies, noting a significant portion of non-votes at Tesla’s last AGM. In after-hours trading, Tesla’s stock was largely unchanged, whereas SpaceX’s shares fell 0.4 percent. The speculation follows SpaceX’s recent record IPO and earlier reports that it considered a Tesla tie-up before opting to acquire xAI.