Tesla Sinks 12%, SpaceX Down 9% as Midterm Sweep Puts Merger on “A Much Tougher Regulatory Roadmap”

Yahoo Finance ·

[IMAGE CREDIT: NASA/Aubrey Gemignani via Canva] Tesla shares fell 12% today, and SpaceX fell too, after Democrats swept Congress and Texas and raised doubts about a SpaceX-Tesla merger. A slower merger takes away part of the case Tesla’s bulls have made since October. Analysts expect normalized EPS of $3.24 in 2028, still below 2022’s $4.07, so investors are paying mostly for Robotaxi, Optimus and the merger. Even after the drop, Tesla trades far above its five-year average forward P/E. Tesla ( TSLA ) sank another 12% today. That adds to Wednesday’s slide , which came after Democrats won the House, the Senate and the governor’s office in Texas. Both Tesla and SpaceX ( SPCX ) are headquartered in Texas. SpaceX fell 9% as well. On SpaceX’s third-quarter call last month, Musk said merging the two would be a good idea, and both companies are exploring a deal. Dan Ives is a partner and managing director at Yorkville and one of Wall Street’s best-known Tesla bulls. He still expects a merger. But he wrote today that it “now faces a much tougher regulatory roadmap to get this deal done in 2027 given this new political blue roadmap in DC/Texas.” That’s a problem for Tesla’s bulls. When Barclays upgraded Tesla in late October, it called the merger a key part of the bull case and raised its target to $450 . You can’t justify Tesla’s price on its car and battery earnings alone. Analysts expect normalized EPS of $3.24 in 2028, which is still below the $4.07 Tesla earned in 2022: Even so, Tesla’s forward P/E stood at 189x before today’s drop, far above its five-year average of 108x: At today’s price, it’s still about 170x. That’s the kind of multiple AI stocks get, which helps explain why Tesla fell with chip and data-center stocks today. TIKR tracks 44 analysts on Tesla. How many say “Buy”? See the full breakdown of Buy, Hold, and Sell ratings on Tesla, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Tesla’s Analyst Ratings Bloom Energy ( BE ) sank 17%, even though NTT DATA announced a 900 MW fuel cell deal with Bloom this morning. Goldman Sachs analysts expect Democratic wins at the state and local level to bring “short-term data center moratoria, potentially affecting about 45% of planned US data center capacity expansion.” That’s a risk for Tesla too. Its energy business brought in 22% of the company’s gross profit in 2025. And Morgan Stanley autos analyst Andrew Percoco just called Tesla the “very obvious player” in data-center batteries. I wouldn’t buy here. The merger was one of the newer reasons to own Tesla, and it just got slower, with no terms disclosed yet. Even after today’s drop, the stock trades well above its five-year average P/E. That’s on earnings analysts expect to stay below 2022’s through 2028. Of course, if Robotaxi revenue becomes noticeable by mid-2027, as Musk expects, few shareholders will care when the merger closes. TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR’s valuation model and see what Tesla could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It’s free to use. Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!

DYAX Investor Sentiment

Bullish (Long) 64% · Bearish (Short) 36%

310 participants

Related News

원문 보기 — Yahoo Finance