Tesla Chatter Dominates Reddit as SpaceX Merger Speculation Heats Up

Reddit discussion surged around reports that Elon Musk is considering merging SpaceX with
$TSLA after the SpaceX IPO.
European EV registrations rose 67% year-over-year in April, with
$TSLA posting a third consecutive month of growth.
Investors also weighed a billionaire fund manager's Q1 sale of
$TSLA and a competition analysis between Tesla and Alphabet in the robotaxi race.

$TSLA reclaimed a top spot in Reddit investing conversation on Wednesday, driven by a potent mix of merger speculation and encouraging European sales data. The stock gained 1.11% on the day, according to Benzinga, as retail investors processed a flurry of posts and news about Elon Musk’s expanding empire.

Merger Rumors Spark Rival Narratives

The dominant theme on Reddit Wednesday was the possibility of a future merger between

$TSLA and SpaceX, following reports that Musk has discussed the idea with colleagues. A post on r/stocks noted that SpaceX—expected to list on the Nasdaq under ticker SPCX in just over two weeks—already shares resources and personnel with Tesla. The post’s author highlighted that Musk may ultimately aim to combine the two companies after SpaceX’s IPO, which would put him at the helm of two of the ten most valuable U.S. enterprises.

On r/smallstreetbets, a more skeptical post accused Musk of planning to “screw SpaceX investors” by merging with Tesla. The author criticized Tesla’s delivery performance, Full Self-Driving progress, and Optimus robot development, warning that Musk’s ambition to become a “civilizational operating system” posed a risk to shareholders. The post attracted 183 upvotes and 77 comments, reflecting strong engagement from bears and bulls alike.

On r/wallstreetbets, one trader shared a bearish short-term outlook, revealing they were holding a $350,000 margin bet on Tesla and planning to sell their position to short Micron Technology. The thread, referencing analyst calls and commodity-cycle logic, added to the mix of opinions shaping sentiment around the stock.

European Sales Recovery and Competitive Pressure

Away from the merger drama, Tesla’s European business offered a more concrete catalyst. Benzinga reported that EV sales in Europe surged 67.2% year-over-year in April, with Tesla registering a 46.5% rebound to 10,654 units—its third straight month of growth. The data reinforced a narrative of recovery after a difficult start to the year.

However, Investing.com published an analysis pointing to Chinese rival BYD as the structural ceiling on Tesla’s European ambitions. BYD registered 27,008 units in April, more than double Tesla’s total, and continues to expand its lower-priced lineup in the region. The analysis noted that while Tesla’s recovery is real—fueled by fuel-price-driven demand, base effects, and FSD regulatory approvals in the Netherlands—BYD’s aggressive push defines the competitive limit.

Robotaxi Race and Institutional Moves

The Motley Fool published a comparison of

$TSLA and Alphabet in the autonomous driving race, highlighting the massive addressable market—potentially $5–10 trillion globally. Though Alphabet’s Waymo currently leads with operations in 10 cities, the outlet argued that Tesla’s structural cost advantage ($30,000 per vehicle versus Waymo’s $125,000) could eventually allow it to outpace Waymo’s expansion. Reddit posts on the topic generally leaned into the long-term bull case, though few denied the near-term uncertainty.

In another data point for retail digestion, The Motley Fool reported that billionaire investor Philippe Laffont’s Coatue Management sold a significant position in Tesla during Q1 2026, alongside similar sales of Oracle and Nvidia. The fund redirected capital into Lucid Group, a struggling luxury EV maker down 94% since its IPO. The news gave bearish Reddit posters additional ammunition, while bulls countered that institutional rotation is common and not a signal of terminal weakness.

TSLA

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