SolarCity

Could Tesla merge with SpaceX? A Morgan Stanley analyst raises the possibility

Could Tesla merge with SpaceX? A Morgan Stanley analyst raises the possibility

Morgan Stanley stock analyst Adam Jonas told clients Wednesday that if Tesla’s troubles continue, it’s unlikely to be acquired by a tech company, an auto company, or someone from China. But it could end up merging with SpaceX, another Elon Musk company.

A recording of the 55-minute conference call with clients was leaked online. The meeting was held two days after Jonas, a longtime Tesla bull, put a “worst-case” price of $10 on Tesla stock, although he didn’t change his current $230 target price.

Tesla’s stock price fell another 6% on Wednesday, to close at $192.73. That’s the lowest it’s closed since Dec. 6, 2016. It is now down 38% since the first of the...

88°