Elon Musk is now a trillionaire. Is his next big move a merger between Tesla and SpaceX into a $3 trillion behemoth?
Following SpaceX’s splashy record-setting public offering, that’s the big question on many investors’ minds. Tesla’s earnings report on Wednesday, followed by Musk’s call with investors, could provide some answers.
The combined value of SpaceX and Tesla would be comparable to Microsoft, making it one of the largest companies in the world and thus easier to raise additional capital. Streamlining both AI units could improve efficiency, giving it a leg up in the AI race. The megamerger would also give Musk unprecedented control of Tesla.
“We see the possibility of a SpaceX-Tesla combination as strategically coherent on paper, allowing CEO Musk to unify vision, mission, and engineering leadership across both platforms,” JPMorgan analyst Rajat Gupta said in a note to clients earlier this month.
The two companies share many other commonalities beyond Musk.
