Gary Black, an investment manager, shot down rumors that SpaceX might acquire Tesla, calling such hopes a classic case of the "Greater Fool Theory." In a post on X dated July 27, Black explained why a SpaceX takeover of Tesla would be financially damaging for SpaceX shareholders.
He highlighted that for SpaceX to buy Tesla, it would need to pay a significant premium, which would heavily dilute SpaceX’s existing shareholders. plus the combined company's stock would likely trade closer to Tesla’s current lower valuation, eroding the premium investors currently value SpaceX at.
Focus on Tesla’s Core Prospects
Black advised investors to avoid banking on this speculative rescue scenario. Instead, Tesla’s value should be assessed based on fundamentals like autonomous driving progress, vehicle sales, and earnings growth. The narrative of a SpaceX bailout overlooks these critical factors. Both companies have struggled in the market during 2026, with their shares lagging behind broader indices.
Despite growing technological collaborations like Starlink integration in Teslas and shared AI projects Elon Musk has been cautious, emphasizing that any merger would need thorough governance and shareholder approval. Black’s skepticism stems from dilution risks and fiduciary responsibilities, making the deal's feasibility low.
This material is for informational purposes and does not constitute financial advice.
