Should Elon Musk combine Tesla and SpaceX?

Tesla’s batch has been a marketplace heavenly this year and there is a lot of financier and consumer fad about a company’s new Model 3 electric car.

But one distinguished Wall Street researcher thinks that Tesla (TSLA) and a increasingly stretched-for-time CEO Elon Musk should cruise merging a association with his other large try — rocket association SpaceX.

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Morgan Stanley’s Adam Jonas pronounced in a news Tuesday that Tesla’s biggest plea is extreme foe not only from normal automobile makers, nonetheless tech companies looking to step adult their efforts in a driverless automobile market. Think Uber, Apple (AAPL) and Google (GOOGL).

“Tesla’s addressable marketplace of tolerable ride will attract extreme foe from some of a world’s best capitalized tech firms with arguably higher entrance to capital, talent and business models that can monetize automobile information and calm opportunities,” Jonas wrote.

Jonas combined that this is “threatening a long-term autonomy of Tesla as a stand-alone entity.”

Tesla is now valued during about $50 billion, creation it value some-more than determined automobile giants Ford (F), Fiat Chrysler (FCAU) and Nissan (NSANY) and putting it within distinguished stretch of leading GM (GM) and Honda (HMC).

But even nonetheless Tesla’s batch is still adult 40% in 2017, it has plunged some-more than 20% given it strike an all-time high nearby $390 a share in mid-September.

Concerns about prolongation delays for a Model 3, that is meant to be Tesla’s affordable, mass marketplace car, are weighing on a company.

The fact that Tesla has combined nonetheless another new product to a brew — a Semi truck — also has investors shaken about Tesla satirical off some-more than it can chew.

And there are slow questions about either Tesla’s partnership of SolarCity, a renewable appetite company, co-founded by dual of his cousins, of that Musk was chairman, will offer as nonetheless another daze for a still unprofitable Tesla.

Related: Tesla’s lorry won’t be out until 2019…but there are already orders for it

That’s where SpaceX comes in. SpaceX, that has subsidy from Musk as good as try collateral organisation Draper Fisher Jurvetson, mutual account hulk Fidelity and Google owners Alphabet, is valued during $21.5 billion, according to investigate organisation CB Insights.

That creates SpaceX a sixth-most essential unicorn startup on a planet, despite a association that’s not as large as Tesla.

But Jonas thinks SpaceX has a brighter destiny than Tesla. He argues SpaceX could be value as most as $121 billion if all goes right for a company. The space transport business could be value as most as $1.75 trillion by 2040, Jonas wrote.

And while SpaceX contingency contend with a Jeff Bezos-backed Blue Origin and United Launch Alliance — a corner try of Lockheed Martin (LMT) and Boeing (BA) — there is distant reduction foe than there is in a automotive world.

“Our rough displaying of SpaceX reveals a launch business that could be in a rarely widespread position, positioning a association to enter rarely essential markets, such as exclusive satellite broadband,” Jonas wrote.

Related: Musk trolls Tesla haters on Twitter

Jonas remarkable that Tesla and SpaceX already share believe about production — utterly a use of aluminum casting –and that SpaceX employees have mostly been used to beta exam Tesla cars. So a serve fondness wouldn’t be out of a question.

A partnership of Tesla and SpaceX could also encourage Wall Street that Musk will sojourn as focused on his electric automobile business as he is on one day environment feet on Mars.

“Investors widely design Elon Musk to, over time, persevere augmenting amounts of his time and talents to SpaceX, lifting a unequivocally genuine doubt of who could reinstate him during Tesla. A multiple of efforts between a dual firms could residence this critical issue,” Jonas wrote.

Jonas combined that there seems to be a change in how Musk has addressed a SpaceX-Tesla conjecture in a past year.

Related: Tesla house member leaves organisation amidst bungle allegations

During a discussion call in Aug 2016, Musk said, “I don’t consider there’s a clever product motive to mix SpaceX and Tesla” and combined that while a companies cooperate, “it’s not adequate that would clear merging them into one entity.”

Fast brazen to Aug of this year nonetheless and Musk pronounced a “cross-fertilization of believe from a rocket and booster story to auto…has unequivocally been utterly valuable” and it’s helped him consider about how Tesla can improved make mass-market vehicles.

Tesla and SpaceX were not immediately accessible for criticism about a Morgan Stanley report.