Eisman: Tesla–SpaceX Tie-Up Plausible as SpaceX IPO Tops $250B

Steve Eisman, the investor known for betting against parts of the U.S. housing market before 2008, spoke in a June 8 television interview and described a possible corporate combination of Tesla and SpaceX. He said many SpaceX shareholders would view such a transaction unfavorably.

Demand for SpaceX’s planned IPO exceeded $250 billion against a roughly $75 billion offering, reflecting strong investor interest in SpaceX as a standalone company.

Eisman outlined a scenario in which Elon Musk could use SpaceX’s public-market value to acquire Tesla and fold the businesses into a single corporate structure. As a SpaceX investor, he said he would oppose that outcome and quoted, ‘I wouldn’t doubt it. I think if I was a shareholder of SpaceX, that’d be the last thing in the world I’d want him to do. But I’m sure he’s going to do it.’

Eisman pointed to Tesla’s weaker earnings in recent years and described the electric vehicle industry as capital-intensive and highly competitive. He highlighted lower production costs at some Chinese automakers as a factor that can pressure Tesla’s margins.

The strong pre-IPO demand for SpaceX has focused attention on any transaction that would change the company’s ownership or strategy. Regulators and shareholders would likely review any merger or equity swap involving Musk’s companies.

Eisman’s remarks add to broader market discussion about how SpaceX’s public valuation could be used in deals involving other companies in Elon Musk’s business portfolio.