Why a Merger With Tesla Could Be a Disaster for SpaceX
You can’t say it wasn’t predictable, but will it really happen?
Investors have long speculated that Elon Musk could combine his two trillion-dollar companies, Space Exploration Technologies (NASDAQ:SPCX) and Tesla (NASDAQ:TSLA) now that SpaceX is publicly traded, and just four months after SpaceX’s IPO, Musk has expressed interest in doing so. Earlier this year, SpaceX acquired xAI, Musk’s AI company, another sign that he is trying to consolidate his empire.
The boards of Tesla and SpaceX have formed special committees to determine whether a merger is in their best interest. Musk is not participating in the review, having recused himself, though he did call a combination of the two companies “a good idea,” citing operational synergies in AI, chip manufacturing, robotics, and other areas.
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