The Tesla (NASDAQ: TSLA) share price hasn’t had the best year so far, down 3.3%. After coming within touching distance of $500 late last year, the shares fell into a steady decline.

The shares are now trading at around $423, and shareholders are probably wondering when the next leg up is. Well, a proposed merger with SpaceX ahead of the IPO could be just what they need.

But would an electric car company and a space exploration startup be the best of mates — or a match made in hell?

How a merger might impact the price

A merger could move Tesla’s price in either direction. Three mitigating factors matter most: the exchange ratio, SpaceX’s implied valuation, and whether investors see the…