$TSLA · Parkev Tatevosian, CFA · 2026-11-08

We have some unfortunate news for Tesla and SpaceX stock investors, as the election results could be negative for both companies, especially regarding a potential merger or acquisition of Tesla by SpaceX.

I wanted to review those details and what they might mean for SpaceX and Tesla, and whether this is a buying opportunity for the companies led by Elon Musk.

The two biggest sources of concern regarding SpaceX and Tesla are the increasing regulatory hurdles to building data centers; Secondly, there has been a lot of discussion about a merger between Tesla and SpaceX or SpaceX acquiring Tesla, and I have made a few videos in which I have shown that doing so makes perfect sense.

Elon Musk runs two trillion-dollar publicly traded companies, and he also has other interests and several companies that he manages and invests in, so merging these two companies seems perfectly logical; It will reduce the complexity of the situation, alleviate some friction, and promote cooperation and teamwork between them, so I think it makes perfect sense.

However, regulators may make it more difficult under Democratic control, who are typically more restrictive in allowing mergers, acquisitions, and so on, because this generally reduces competition for consumers.

It makes things more expensive for consumers while improving conditions for the companies making those acquisitions, and the data suggests that this has merit.

Furthermore, Elon Musk poured hundreds of millions of dollars into that election, so seeing voters vote against Tesla, against Elon Musk, and against the candidates and causes he supported is evidence of that.

Dan Ives, who was one of the biggest optimists about Tesla, SpaceX and anything related to Elon Musk, was ranked slightly lower than Kathy Woods, who has been extremely optimistic about everything related to Elon Musk for many years now.

Dan Ives was ranked lower than that, but he remains extremely optimistic about everything related to Elon Musk. He says he believes a SpaceX-Tesla merger is still possible, but he faces a much tougher regulatory roadmap to complete the deal in 2027.

Now, I was somewhat at odds with Cathy Woods and Dan Ives. I have been warning investors about SpaceX and Tesla, arguing that their valuations are too high and cannot be justified given the companies' prospects and delays in achieving their ambitious goals.

So far in 2026, avoiding these two companies was the right decision. You took a lot of risks with Tesla and SpaceX, and now you are in a losing position.

Tesla's stock was down 23.4% at the time of this video's recording, and these two companies are riskier than the average stock in the S&P 500. So you could have done better by investing in the S&P 500 while taking on less risk.

I don't think these are buying opportunities. I believe these two stocks are among the most overvalued in the market, and Tesla is more overvalued than SpaceX in my opinion. Therefore, I do not see this as a buying opportunity.

I see this as a possible situation where the bubble might burst, although I don't think that will be the case. I don't think there will be a sharp drop or collapse in Tesla and SpaceX shares, because I believe again that the loyal following of many of Elon Musk's followers, and taking his word for everything he says, means that he can make an announcement in a few days, and the loyal followers will follow what he says and pay thousands of dollars and maybe buy more Tesla or SpaceX shares.

So I don't think these stocks will collapse any further, but I simply feel they are overvalued and prone to such waves of selling whenever investors realize that these companies may not deliver the results their management teams expect.