A well-known investor recently made a bold guess on a podcast: space exploration companies are unlikely to choose the traditional IPO route and are more likely to merge and go public through a reverse merger with a major electric vehicle company.

His reasoning is as follows——

The leader doesn't need to follow the usual path. Instead of spending time on the conventional IPO process, a reverse merger might be a better option. The benefits are obvious: it allows the merging of two core assets into a single share structure, further strengthening influence and control. In simple terms, it’s about integrating a business empire into a larger, more influential entity.

This statement has sparked quite a bit of debate in the investment community. While reverse mergers are quick and efficient, they also come with risks and complexities—issues involving asset valuation, shareholder rights, market reactions, and more.

If this merger actually happens, what impact will it have on the electric vehicle giant’s stock price? Is it a positive or negative signal? How will the capital markets respond? These are all questions worth pondering.

What’s your opinion? Among these two listing routes, which one is more practical? If a reverse merger actually occurs, how should we forecast the stock price prospects?