Tesla’s strategic direction has been a subject of debate among investors, with some questioning the company’s priorities. Ross Gerber, CEO of Gerber Kawasaki Wealth & Investment Management, has suggested that SpaceX could potentially bail out Tesla in a deal that would be framed as a merger.
A Merger in the Making
Gerber’s comments come as Tesla faces criticism for its product and spending priorities, including the decision to wind down Model S production to focus on the Optimus humanoid robot. The move has been met with skepticism, with some investors questioning the company’s long-term direction. Gerber believes that a merger between Tesla and SpaceX would be a more likely outcome, with the structure framed as a merger similar to how Musk-linked ventures have been handled in the past.
The Bailout Scenario
The “bail out” framing is partly about corporate choreography, with a SpaceX-Tesla tie-up resembling prior Musk dealmaking where separate projects are brought under a tighter umbrella. This idea intersects with Tesla’s previously announced $2 billion investment in SpaceX, a link that already binds the companies financially. Gerber expects that everything will be “wrapped up as one ball of Elon,” with SpaceX and Tesla operating under a single umbrella.
Autonomy Expectations
Another pressure point is autonomy expectations, after Elon Musk said vehicles running Hardware 3 would not reach Unsupervised Full Self-Driving. Musk has said that Tesla could offer HW3 owners a path to swap to HW4 and update cameras, but the disclosure still resets timelines and raises cost questions. Gary Black of The Future Fund LLC has said that he expects Tesla’s valuation to take a hit if self-driving progress slows.
Shifting Focus: Tesla’s High-End Departure
Ross Gerber has previously discussed how Tesla’s decision to end production of the Model S and Model X reflects a significant shift in the company’s focus away from its traditional high-end offerings. This strategic pivot aligns with Gerber’s warnings regarding the potential delays in Tesla’s autonomous driving timeline, which may impact its market position in the luxury EV segment.
Understanding Tesla’s Shift Toward Robotics
The robotics pivot is already showing up in product planning, with Tesla emphasizing the Optimus humanoid robot as it pares back attention on Model S and Model X. Musk has said that Optimus’ reveal would be closer to when production is expected, pointing to July and August as the relevant window. The company’s rivals are also trying to blend mobility and robotics, with Xpeng planning volume production of flying cars next year while expanding its humanoid robot efforts.
How Musk’s Vision Could Transform Valuations
Gerber’s merger talk arrives alongside mixed market signals on Tesla’s setup, with some analysts flagging satisfactory momentum but weak value characteristics. The same data set points to a favorable long-term price trend despite near-term skepticism. Tesla’s stock price has been volatile, with the company’s shares falling 3.56% to $373.72 at Thursday’s close and slipping another 0.14% to $373.18 in overnight trading.
Conclusion
Tesla’s future is uncertain, with the company facing criticism for its strategic direction. A potential merger with SpaceX could be a likely outcome, with the structure framed as a merger similar to how Musk-linked ventures have been handled in the past. As the company navigates these changes, it remains to be seen how Tesla’s valuation will be impacted and what the future holds for the company.