JPMorgan analyst Rajat Gupta believes that while a merger between Tesla and SpaceX 'seems reasonable on paper,' current speculation surrounding the deal overlooks potential obstacles. Gupta noted that the merger would allow CEO Elon Musk to integrate the visions, missions, and engineering leadership of the two platforms, with the companies' shared artificial intelligence goals potentially serving as the 'strategic glue.' However, he also mentioned that the merger faces multiple hurdles, including regulatory approvals across multiple jurisdictions, balancing governance and voting rights, and concerns that the merged entity might be dominated by SpaceX. He added, 'We will closely monitor SpaceX's acquisition currency, the regulatory environment, and Musk's voting power at Tesla, as these factors could act as catalysts as the merger approaches.' JPMorgan believes that if a deal is reached, the most likely form would be an all-stock acquisition of Tesla by SpaceX, a structure that could narrow the valuation gap and reduce cash outlays. Gupta maintains a neutral rating on Tesla with a target price of $475.