RBC on potential SpaceX/Tesla merger:

"We think a deal could require SPCX to pay a meaningful premium for TSLA shares given Musk controls only ~20% of Tesla's voting power versus ~82% at SpaceX, creating an asymmetric governance dynamic that could require adequate compensation for Tesla shareholders. In our framework, we believe TSLA holders would be receptive at $480/share, reflecting our SOTP intrinsic value plus a ~15% premium, which at current prices would imply an approximately 50/50 ownership split of the combined entity. That said, we think the deal math is more nuanced from SPCX's perspective. Given that SpaceX represents ~70% of our combined pro forma valuation, SPCX shareholders could contribute the majority of the value while owning less than half of the combined company at a $480/share purchase price — a dynamic that could face pushback. There are, however, meaningful merits to a combination. Terafab is perhaps the most compelling near-term catalyst, as a joint chip manufacturing facility could eliminate costly R&D duplication across two of the most compute-intensive companies in the world and unlock well over $1T in long-term cost savings versus sourcing chips externally, based on our estimates."