Overview
- RBC Capital raised its Tesla price target to $500 on Tuesday, July 7, by modeling a 25–30% deal premium that it says adds roughly 15% to Tesla’s intrinsic value.
- Tesla reported roughly 480,100 vehicle deliveries in Q2, a clear beat that was published July 2 and coincided with an intraday stock drop of about 7% as investors had largely priced in the outcome.
- RBC’s note assumes the most likely structure would be an all-stock transaction with SpaceX acquiring Tesla at a 20–30% premium and warns that Elon Musk could control more than 50% of a combined company.
- Other Wall Street firms reacted unevenly, with some lifting robotaxi and platform assumptions while trimming humanoid and energy storage forecasts and flagging heavy 2026 capex and AI/compute spending as cash-demand risks.
- Market attention now turns to Tesla’s July 22 earnings for concrete figures on automotive margins and free cash flow and to any formal merger filings or board actions that would trigger regulatory review and investor reassessment.