TradingKey – On October 26, Eastern Time, Tesla (TSLA) shares rose over 6%, reaching an intraday high of $396.96, the highest level since July 13.

Yorkville Ives & Co. analyst Dan Ives said today that if Tesla merges with SpaceX (SPCX), Tesla’s transaction valuation could exceed $500 per share. He estimates an 80% to 90% probability that the two sides will reach a deal before the end of 2027.

Ives believes a merger could combine Tesla’s autonomous driving and Optimus robot businesses with SpaceX’s computing infrastructure, chip design capabilities, and capital. In his $500-per-share valuation, the automotive business contributes about $165, while autonomous driving and Optimus contribute about $335.

This means that the core of the deal…