10:53 AM EDT, 03/27/2026 (MT Newswires) -- Tesla (TSLA) CEO Elon Musk's SpaceX reportedly planned IPO of about $75 billion would represent a watershed moment in the space and technology sectors, Wedbush said in a note Friday.

The reported IPO size is above the previous expectation of about $50 billion and would lead to a roughly $1.75 trillion valuation, the note said.

Wedbush said it still expects Tesla and SpaceX to merge next year, adding the "groundwork [is] already in place for both operations to become one organization."

Tesla already has a stake in SpaceX after the company's $2 billion investment in xAI was converted to SpaceX shares following SpaceX's acquisition of xAI this year, the investment firm said.

Additionally, the "recent announcement of a joint Terafab facility between SpaceX and Tesla further ties both operations together making it more feasible to merge operations given the now existing overlap being built out across the two with this the first step," the note said.

"Musk wants to own and control more of the AI ecosystem and step by step the holy grail could be combining SpaceX and Tesla in some way to give the connected tissue between both disruptive tech stalwarts looking to lead the AI Revolution," the firm said.

Wedbush has an outperform rating on Tesla and $600 price target.

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