That logic, and Musks dominant role at both companies, creates a potential conflict of interest because it would advantage the likely acquirer, SpaceX — where Musk has far greater control and now derives the vast majority of his net worth — if Tesla became relatively cheaper.

Pompliano suggests merging Tesla and SpaceX to give public investors a chance to back this generation's greatest entrepreneur.

SpaceX shares surged early on Tuesday as investors bet on Elon Musk's sprawling empire that spans rockets to AI, even though the stock carries a higher valuation than the other…