Speculation regarding a potential merger between Tesla (TSLA) and SpaceX (SPCX) continues to grow. On *The Brainstorm*, a podcast by Cathie Wood's ARK Invest, several guests noted that if Tesla and SpaceX move forward with a merger in the future, Tesla's operations in China could become a complex regulatory variable. SpaceX is involved in U.S. national security and satellite projects, while Tesla's Shanghai Gigafactory serves as a major manufacturing and export hub, meaning certain technology and business dealings could face heightened scrutiny.

TradingKey - On August 6 local time, SpaceX (SPCX) officially confirmed that Tesla (TSLA) and SpaceX will jointly build the Terafab super chip factory in Grimes County, Texas. This signifies that the long-planned Terafab has finally transitioned from a concept into the actual investment phase.

Tesla crushed deliveries at 480,126 with $28.2B revenue (+26% YoY). But operating margin collapsed to 1.4%, free cash flow turned negative $1.1B, and stock is testing $338 resistance after breakdown.

TradingKey - On August 9, Eastern Time, Elon Musk endorsed a forecast by network infrastructure giant Cloudflare (NET) on social media platform X. According to the forecast data, internet traffic generated by AI bots will surpass that of humans for the first time in May 2026, 18 full months ahead of the original projection of late 2027.

SpaceX's plant construction plan will increase cash flow pressure in the short term, but it is a long-term positive that helps reduce costs and improve efficiency.

SpaceX is approaching its financial results and a wave of lock-up expirations. While its short interest has surpassed that of Tesla, investors should remain alert to the risk of a short squeeze.
