M Stanley published a research report stating that Space Exploration Technologies Corp. (SPCX.US) and Tesla, Inc. (TSLA.US) , under a shared mission of converting energy into intelligence, are sharing technology, talent and infrastructure. The broker believes Elon Musk and his team see AI value creation over the next decade as depending on who can build, power, connect and equip AI in the physical world. Both companies have independently built physical AI capabilities that can complement each other, and are gradually narrowing the gap between one another.

The broker noted that physical AI (robots) requires both a “body” (manufacturing) and a “soul” (AI), with both needing to evolve together. Existing links include cooperation between the two companies and Intel Corporation (INTC.US) to build a joint chip factory named Terafab in Texas, with reported total investment potentially reaching about USD119 billion. Space Exploration Technologies Corp. (SPCX.US) has purchased hundreds of millions of USD worth of ESS (energy storage system) products Megapack and batteries from Tesla, Inc. (TSLA.US) , while also procuring about USD131 million of Cybertruck and other vehicles in 2025, as well as about USD506 million of Megapack products to support Colossus. The two companies are also jointly developing an agentic platform named Macrohard. In addition, both companies are targeting vertically integrated solar manufacturing capacity of 100 gigawatts annually in the US, while sharing expertise in material engineering such as alloys, aluminum castings and welding, as well as upstream suppliers. Tesla, Inc. (TSLA.US) is integrating Starlink into its full vehicle lineup, beginning with Cybercab, to support Robotaxi operations in areas with insufficient cellular network coverage. Following the merger of xAI and SpaceX, Tesla, Inc. (TSLA.US) holds about 18.99 million Class A shares of Space Exploration Technologies Corp. (SPCX.US) , accounting for less than 1% of total share capital.

The broker believes Space Exploration Technologies Corp. (SPCX.US) can provide Tesla, Inc. (TSLA.US) with computing power, which it estimates will reach 4.9 gigawatts by the end of 2027 and 15.3 gigawatts of terrestrial computing power by the end of 2031, as well as high-speed, low-latency connectivity centered on low-earth-orbit satellites and abundant cash resources. Tesla, Inc. (TSLA.US) , meanwhile, can provide Space Exploration Technologies Corp. (SPCX.US) with robots serving as data and edge computing nodes, diversified environmental data, energy storage and solar power, as well as large-scale manufacturing experience. As large language models may be approaching their potential limits, the broker expects market focus to shift toward AI applications in underpenetrated areas such as the physical world, making the two companies more likely to jointly capture opportunities in physical AI.

The broker maintained an Overweight rating and USD300 target price on Space Exploration Technologies Corp. (SPCX.US) , and also listed a USD400 target price for Tesla, Inc. (TSLA.US) . (da/ad)(Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)