Baird: Tesla and SpaceX Merger Likely

On June 24, Baird analyst Ben Kallo predicted that Tesla (TSLA.O) is expected to deliver 392,900 vehicles in the second quarter. He added that the electric vehicle company’s total deliveries will reach 1.68 million by 2026. The analyst wrote, "We believe a merger between SpaceX (SPCX.O) and Tesla is quite likely to occur, expected to take 12 to 18 months." He also noted that the merger of the two companies is the "ultimate direction" and is "clear and compelling, as both companies would benefit from greater scale." Kallo reiterated his 'outperform' rating on Tesla with a target price of $522.