A combined SpaceX (SPCX) and Tesla (TSLA) would haul in some serious coin, Cathie Wood’s Ark Invest said in a new note.
The Elon Musk bull’s firm estimated that SpaceX and Tesla could generate $3.8 trillion in sales and $2.7 trillion in operating profits by 2031, with SpaceX contributing roughly 62% and 69%, respectively.
To get a sense of how bullish a call this is, Yahoo Finance data shows that Wall Street analysts expect SpaceX to post $43 billion in sales this year, while Tesla clocks in at $107 billion.
“While our model assesses Tesla as a standalone business, a SpaceX-Tesla merger could take place within the next five years,” the Ark Invest team said. “Tesla’s highly cash-generative robotaxi network could help fund SpaceX’s ambitious plans for orbital data centers, and at the same time SpaceX’s compute-intensive frontier AI models could serve as the planning layer for Optimus deployments. Working together on the Terafab project, both companies could alleviate chip constraints.”