Good morning. When Fortune colleague Shawn Tully weighs in, it’s a must read.
That’s certainly the case with his latest: “If Elon Musk merges SpaceX with Tesla he’ll create a $3.4 trillion behemoth—with zero profits.”
“Without SpaceX as an acquirer in the wings,” Tully writes, “Tesla looks highly vulnerable to a major selloff, given that it’s somehow maintaining a gigantic, even expanding valuation as its profits dwindle.” It would be the largest merger of all time—and leave SpaceX’s shareholders holding the bag. Hm.
Today’s tech news follows. —Andrew Nusca
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