TSLA surged in Reddit discussion as merger speculation with SpaceX dominated r/wallstreetbets.
A high-stakes options bet on a SpaceX acquisition of Tesla captured the community's attention, with one trader holding 223 December 2026 $990 calls.
Same-day news articles highlighted prediction markets showing increased odds of a merger, with Kalshi estimating 51-61% probability before May 2027.
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A post on r/wallstreetbets by a trader holding 223 December 2026 $990 calls argued that Elon Musk could consolidate AI and robotics under SpaceX by exchanging Tesla shares for SpaceX shares. The post garnered over 1,700 upvotes and 260 comments, making it one of the most engaged discussions of the day. The author described the setup as 'the single most profitable option out of roughly 8,000 different contracts on the entire Tesla chain in the event of surprise purchase announcement.'
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Same-day news from The Motley Fool and Benzinga amplified the theme. Prediction markets on Kalshi and Polymarket showed 51-61% and 41% probability respectively of a merger announcement within the next year. Ron Baron's $30 trillion SpaceX valuation forecast added to the narrative, while a Motley Fool article noted that SpaceX's updated S-1 IPO filing contained revised language suggesting potential future equity issuances for transactions.
Despite the speculative frenzy, some analysts cautioned about Tesla's valuation, with a P/E ratio of 357 and a forward P/E of 114x based on 2028 earnings estimates. The broader market also faced headwinds, with the S&P 500 falling 2.6% on Friday amid dispersion unwind risks and upcoming CPI data.
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