SpaceX and Tesla Merger Talks Are Heating Up. Here's Why Investors Should Pay Attention.

SpaceX (NASDAQ: SPCX) and Tesla (NASDAQ: TSLA) are preparing for a megamerger. At least that's what a growing number of reporters and experts believe.

"Investors and analysts have long speculated about the ⁠possibility of combining Musk's electric vehicle and space firms, with the discussion intensifying during SpaceX's record $75 billion initial public offering ​process," Reuters reports.

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SpaceX and Tesla CEO Elon Musk has done little to temper the speculation.

"As you can tell from the many collaborations on so many fronts with SpaceX, there's more and more overlap ... We can't ​talk about, you know, combining companies and that kind of thing on an earnings call " Musk recently told investors. "It's ​got to be done with the appropriate process."

How likely is a potential megamerger? "I would put the odds that these two will combine at 90% today," ​one industry analyst revealed after hearing Musk's comments. "If you were going to ask me yesterday, I would have ​said it's 80%."

While I'm not sure the odds are that high, I do believe it's more likely than not that a merger will eventually be attempted. And there's one obvious reason why.

Speculation surrounding a potential merger between Tesla and SpaceX stems from several fronts.