Tesla Inc (NASDAQ:TSLA) trended on Wednesday as investors weighed fresh speculation around a potential future combination with SpaceX alongside improving European EV sales momentum and Tesla's expanding AI ambitions.

• Tesla stock is gaining positive traction. Why is TSLA stock advancing?

SpaceX IPO Speculation Fuels Tesla Narrative

Tesla shares gained attention after CNBC reported on Tuesday that SpaceX could begin trading on the Nasdaq in just over two weeks following its earlier merger with xAI, which valued the combined entity at roughly $1.25 trillion in private markets. The ticker will be SPCX.

The report said Elon Musk has discussed the possibility of eventually combining Tesla and SpaceX, noting the companies already share engineering talent and collaborate on power and compute-related constraints.

With broader markets relatively flat, the merger speculation became a major driver of Wednesday's narrative around Tesla.

Tesla Posts Strong European EV Sales Growth

Separately, Tesla recorded strong April sales growth in Europe as EV adoption accelerated across the region.

Data from the European Automobile Manufacturers Association (ACEA) showed Tesla sold 9,169 vehicles in April, up 67.2% year-over-year, while year-to-date sales climbed 61.7% to 67,389 units.

BYD Co Ltd (OTC:BYDDY) posted even faster growth, with April sales surging 116.6%, while Geely Automobile Holdings Ltd (OTC:GELHY) reported modest gains. Investor Ross Gerber said rising gasoline prices tied to the Iran war may have pushed more consumers toward EVs. At the same time, Musk recently defended Tesla's momentum by highlighting strong Model Y sales.

AI, Robotics and Energy Continue Expanding Tesla's Story

Tesla continues operating beyond traditional auto manufacturing as a vertically integrated EV, AI, robotics, and energy company.

In addition to electric vehicles, Tesla sells stationary battery storage systems, solar products, insurance offerings, and operates its global fast-charging network.

The company delivered nearly 1.64 million vehicles globally in 2025.

Analysts and investors increasingly focus on Tesla's AI infrastructure needs because autonomous driving, humanoid robotics, and large-scale compute requirements align closely with the same power and semiconductor constraints discussed in the SpaceX-related reports.

Earnings & Analyst Outlook

Looking further out, the next major catalyst for the stock arrives with the July 22 (estimated) earnings report.

  • EPS Estimate: 42 cents (Up from 40 cents year-over-year)
  • Revenue Estimate: $24.53 billion (Up from $22.50 billion YoY)
  • Valuation: P/E of 397.8x (Indicates premium valuation)

Analyst Consensus & Recent Actions: The stock carries a Buy rating with a consensus price target of $403.59. Recent analyst moves include:

  • UBS: Neutral (Raises Target to $364 on April 23)
  • Canaccord Genuity: Buy (Raises Target to $450 on April 23)
  • RBC Capital: Outperform (Lowers Target to $475 on April 23)

TSLA Price Action

TSLA Price Action: Tesla shares were up 1.11% at $438.39 at the time of publication on Wednesday, according to Benzinga Pro data.

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