Business · Companies · 2 hrs ago
Musk’s SpaceX and Tesla could merge in a deal worth nearly $4 trillion
Investors expect Elon Musk may merge SpaceX and Tesla, two publicly traded companies he founded and leads, but no deal has been announced.
The combined company could be worth nearly $4 trillion, putting it among the most valuable firms on Wall Street.
Analysts say SpaceX could buy Tesla in exchange for shares, or the companies could join under a new holding company.
Musk has much stronger voting control at SpaceX than at Tesla, and analysts estimate he could hold about 56% of the combined company’s voting rights.
The companies already work together on projects including Terafab, a planned chip factory, and recently presented a Tesla car using SpaceX technology.
Analysts see a merger as a way to link their work in chips and artificial intelligence with products such as cars, rockets and robots.
An announcement could come before Tesla’s expected shareholder meeting in early December; if not, Barclays analysts say a deal could be launched within the next 6 to 12 months.
Elon Musk’s SpaceX and Tesla could merge in a deal that would create a company valued at nearly $4 trillion.
Analysts say SpaceX could acquire Tesla in a share swap, although creating a new holding company is another option.
A merger could give Musk about 56% of the combined company’s voting rights, according to Barclays.
The companies are already collaborating on projects including Terafab, a planned semiconductor factory.
Analysts have suggested the deal could be announced before a Tesla shareholder meeting scheduled for December 6, but it has not been confirmed.
- Who
- SpaceX and Tesla, the companies founded and led by Elon Musk.
- What
- A possible merger that could create a company valued at nearly $4 trillion.
- When
- Analysts say an announcement could come by December; no deal has been confirmed.
- Where
- Not stated.
- Why
- Analysts point to closer collaboration between the companies and the possibility of consolidating Musk’s control of the combined group.
This story does not have two clearly opposing sides.
SpaceX absorbed xAI, bringing the X and Grok brands into SpaceX, according to Expansión.
SpaceX began trading on the Nasdaq, according to Expansión.
Tesla presented a flying car powered by SpaceX technology, according to Expansión.
Tesla’s shareholder meeting is scheduled for this date, where the merger could be put to a vote, according to Corriere della Sera.
- Combined valuation
- Nearly $4 trillion
- SpaceX market capitalization
- $2 trillion
- Tesla market capitalization
- $1.4 trillion
- Musk’s estimated voting rights in combined group
- About 56%, according to Barclays
- Terafab potential cost
- Up to $119 billion, according to Corriere della Sera
3 sources
What people are saying
With all the collaborations, at so many levels, between the two companies, who can say what initiatives may be taken.
The two companies can be supported in the future by Terafab and SpaceX's potential data centers in space.