Elon Musk sends strong message to SpaceX and Tesla investors
Elon Musk sparked debate after speaking at the All-In Summit about the future of Tesla and SpaceX. When asked why the two companies still operate separately despite close collaboration, Musk appeared puzzled. "With all this collaboration, on so many levels, who can imagine what action one might take when there's so much close collaboration in so many areas," he remarked, according to Yahoo Finance.
However, Musk also hinted at the possibility of a merger, saying a formal combination would need to be done with the appropriate process. This came after reports of Musk discussing a merger with colleagues ahead of SpaceX's IPO in June. Analysts and even Musk's own business partners now view a Tesla-SpaceX merger as more likely than not, with Morgan Stanley maintaining a bullish stance on SpaceX stock and Wedbush raising the odds of a deal to 80-90% by 2027.
The ambitious Terafab chip manufacturing project, a joint venture between Tesla, SpaceX, and xAI, also fuels speculation, with a potential cost of $119 billion. While some analysts remain skeptical about the timeline and impact on investors, the deep financial ties between Tesla and SpaceX make a formal merger more feasible.
Written by urgent.news from Yahoo Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
