Report: Elon Musk considers merging Tesla and SpaceX into $3.4 trillion company despite expected losses
By
Shawn Tully
Pulled from the oven just right. Trustworthy, fact-dense, deeply satisfying.
Summary
Elon Musk is reportedly considering a merger between Tesla and SpaceX, which would create a $3.4 trillion conglomerate. According to CNBC and analyst speculation, the deal has an 80% probability according to Wedbush Securities analyst Dan Ives. However, the article highlights that such a merger would likely be unprofitable from day one due to structural and financial challenges. The union would be the largest merger of all time, combining Musk's two biggest holdings in electric vehicles, space technology, and AI.
Key quotes
· 3 pulledWedbush Securities analyst Dan Ives put the chances for a combo at 80%, adding that the game plan was already in place for fusing operations at Elon Musk's two biggest holdings.
Long-time Tesla investor Ross Gerber, citing that Musk had already folded xAI into SpaceX, stated that this new gambit would advance his vision of running one big company.
A SpaceX-Tesla union would mark by far the largest merger of all time.
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