Tesla Stock Slips Premarket: Ross Gerber Sees Tesla-SpaceX Merger Forming A ‘Berkshire Hathaway Of AI’

• He added that Tesla and SpaceX are increasingly intertwined and said that combining them “just makes the most sense” within CEO Elon Musk’s broader tech ecosystem.
• Tesla's capex is expected to exceed $25 billion this year as it ramps investment across AI infrastructure, Optimus robots, Cybercab robotaxis and chip development.
• Gerber has also previously warned that brand perception risks tied to Musk could weigh on Tesla's shares. 

Shares of Tesla (TSLA) slipped marginally in premarket trading on Monday after investor Ross Gerber said Tesla and SpaceX could eventually combine into a “Berkshire Hathaway of AI,” as the EV maker ramps up spending across robotics, autonomy and custom chip infrastructure.

TSLA stock just logged its worst week in over a month, declining by more than 6% amid plans to sharply increase capex to support its expanding AI strategy.

Gerber Says Tesla-SpaceX Merger Is ‘Inevitable’

Ross Gerber, chief executive of Gerber Kawasaki Wealth & Investment Management, told The Information that a merger between Tesla and SpaceX could be “an inevitability,” arguing that investor demand to own both companies is already influencing Tesla’s trading dynamics.

“When you actually look at what investors want, they want to own both stocks,” Gerber said, adding that some Tesla shareholders may sell shares to gain exposure to SpaceX.

According to Koyfin data, Gerber Kawasaki Wealth & Investment Management holds about a 0.01% stake in Tesla valued at more than $90 million.

Gerber said that the companies’ operations are increasingly intertwined and suggested that combining them could simplify investor positioning around CEO Elon Musk’s broader tech ecosystem. “Because they’re so intertwined, the businesses … it just makes the most sense for them to come together,” he said.

He also said that many Tesla investors want access to SpaceX but cannot currently invest directly because the company remains private, potentially prompting portfolio rotation if opportunities emerge.

Gerber added that a combined entity could create a “Berkshire Hathaway of AI,” offering investors a single platform spanning robotics, launch infrastructure, autonomous systems and AI. “If people really want to bet on the future, this is a very pure play on that,” he said.

Gerber Warns On Tesla Demand Risks

Gerber flagged key concerns around Tesla’s near-term demand outlook last week. “There’s a lot of analysts that think they’re going to grow sales over the next couple years and I just don’t know with whom,” he said.

He also warned that brand perception risks from Musk’s public profile could weigh on the stock as Tesla prepares to compete more directly in autonomous mobility services against platforms from Alphabet, Uber, Lyft and Amazon.

“If people don’t like your brand, they’re not going to take your service when there’s three other people to take,” he said.

Gerber also said Tesla remains heavily dependent on its EV and battery-storage businesses for cash generation, warning that weaker vehicle demand could create a “snowball going the wrong way.”

Tesla Ramps Up Spending On AI And Robots

Tesla’s latest quarterly results underscore the scale of its investment push across AI infrastructure.

The company reported first-quarter adjusted earnings per share of $0.41, ahead of estimates of $0.36, while revenue came in at $22.39 billion, broadly in line with expectations. Tesla generated $1.44 billion in free cash flow during the quarter but said it expects negative free cash flow for the remainder of 2026.

CFO Vaibhav Taneja said Tesla has entered a “very big capital investment phase,” adding the spending cycle is expected to last a couple of years. Tesla now expects its capex to exceed $25 billion this year as it accelerates investment across Optimus humanoid robots, Cybercab robotaxi production, Terafab factory automation and chip development.

Tesla Targets $2B AI Hardware Deal

Separately, Tesla disclosed in its earnings filing that it entered into an agreement this month to acquire an undisclosed AI hardware company for up to $2 billion in Tesla stock and equity awards tied to performance milestones from deployment of the company’s tech.

Following the disclosure, Lumasenti managing partner Larry Goldberg suggested semiconductor tools startup Atomic Semi could be a possible acquisition candidate, though Tesla has not confirmed the acquisition target.

How Do Retail Traders Feel About TSLA?

On Stocktwits, retail sentiment was ‘extremely bullish’ amid ‘high’ message volume.

One user said, “If any M&A narrative even sniffs reality, valuation becomes the battlefield. The exchange ratio isn’t just math — it’s power. Who gets diluted? Who controls the merged entity?”

Another user weighed in on a potential Tesla-SpaceX merger scenario saying, “I'm gonna hold half position and scale the other half into ASML URI and GOOGL. Remember Alphabet owns over 6% SpaceX already (they bought in at like $12bucks/).”

So far this year, TSLA stock has lagged its “Magnificent Seven” peers, making it the group’s worst performer, with a 16% decline.

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