Tesla Appears to Have a New Master Plan... and SpaceX Is a Huge Part of It

Tesla (TSLA) is no longer just an electric vehicle company. If you've been paying attention to Elon Musk's recent moves, a much bigger picture is emerging: one where Tesla and SpaceX may eventually become the same company.

That's the view of Wedbush analyst Dan Ives, who recently reaffirmed his prediction that the two companies will merge in 2027. In his view, the groundwork is already being laid, and the financial and operational ties between the two companies are tightening fast.

The Terafab Is the Key

According to a Teslarati report: 

• One of the clearest signs of convergence is the announcement of a joint Terafab facility in Austin, Texas.
• The plan calls for two advanced chip factories. One would serve Tesla's AI needs for its vehicles and Optimus robots. The other would target space-based data centers under SpaceX's vision.
• Ives calls the Terafab the "first step" toward full operational integration between the two companies. 

On Tesla's Q4 earnings call, Musk himself laid out why chips are so critical. He said he views chip production as the single biggest constraint on Tesla's growth over the next three to four years. 

He even floated the possibility of building an entirely new semiconductor fab because, in his words, existing supplier output, even from partners like TSMC (TSM), Samsung, and Micron (MU), may simply not be enough.

The xAI Thread

Tesla invested $2 billion in xAI, Musk's AI startup. When SpaceX acquired xAI earlier this year, that investment converted into a small equity stake in SpaceX: less than 1% of the company's expected valuation, but a stake nonetheless. 

Regulatory filings clearing the transaction in March 2026 formally connected the two Musk-led companies for the first time.

During the earnings call, Tesla CFO Vaibhav Taneja pointed this out directly, saying the xAI investment was part of Tesla's Master Plan IV and that Grok, xAI's AI model, is already being used in Tesla vehicles. 

The idea is that Grok could help manage a massive autonomous fleet at scale. Musk added that if Tesla eventually operates tens of millions of autonomous vehicles, an AI system like Grok would be essential for coordinating the entire network efficiently.

SpaceX's IPO Could Turbocharge Everything

SpaceX is preparing for a public offering expected as early as mid-2026. The company is reportedly targeting a valuation of around $1.75 trillion and aims to raise roughly $75 billion. That capital would fund Starship flights, a NASA-contracted lunar base, expanded Starlink services, and orbital AI infrastructure.

The orbital AI angle is where things get fascinating. Teslarati states that U.S. data centers are expected to consume 470 terawatt-hours of electricity by 2030. That's a staggering amount, and Earth's power grids are already struggling to keep up. 

SpaceX's proposed solution is to host data centers in orbit, powered by solar energy captured in space, which avoids the energy losses that happen in Earth's atmosphere and doesn't suffer from day-night cycles.

For Tesla, access to that orbital computing capacity could accelerate everything from autonomous driving to Optimus robot training to Robotaxi fleet optimization.

What Tesla Is Building Right Now

It's worth grounding all of this in what Tesla is actually doing today. On the Q4 earnings call, Musk announced that the Model S and X will be discontinued next quarter, with the Fremont factory space being converted into an Optimus production line targeting one million robots per year. Cybercab production is set to start in April, while unsupervised robotaxi rides are already running in Austin with no safety monitor and no chase car. 

Tesla ended 2025 with automotive gross margins of 17.9%, up from 15.4% the prior quarter. The energy business hit nearly $12.8 billion in annual revenue. And the company is planning over $20 billion in capital expenditures for 2026, covering six new factories, AI compute infrastructure, and fleet expansion.

The Key Takeaway

Wedbush kept its “Outperform” rating and $600 price target on Tesla, calling a merger with SpaceX the "holy grail" for consolidating Musk's tech empire. Whether that merger even happens is not clear, but what's clear is that Tesla's trajectory is shifting away from a car company toward something far more ambitious.

Out of the 43 analysts covering TSLA stock, 15 recommend “Strong Buy,” two recommend “Moderate Buy,” 17 recommend “Hold,” and nine recommend “Strong Sell.” The average Tesla stock price target is $408, above the current price of about $362.