Tesla Inc. (TSLA, Financials), the electric vehicle and AI firm, may be edging closer to a future with SpaceX after Elon Musk openly endorsed the notion of unit
Tesla Inc. (TSLA, Financials), the electric vehicle and AI firm, may be edging closer to a future with SpaceX after Elon Musk openly endorsed the notion of unit
Elon Musk says combining Tesla and SpaceX could unlock more value across AI, robotics, chips, energy and communications.
A merged company could be worth about $3.5 trillion.
Tesla Inc. (TSLA, Financials), the electric vehicle and AI firm, may be edging closer to a future with SpaceX after Elon Musk openly endorsed the notion of uniting the two businesses.
Musk said there is "a lot of merit" to a combination as the firms increasingly overlap across artificial intelligence, robotics, semiconductor design, satellite communications and manufacturing. The strategic rationale is falling into place.
Tesla robotaxis and Optimus robots might be supported via Starlink. Tesla's batteries and energy-storage technologies might be used to power SpaceX's infrastructure. The collaborative Terafab initiative is already meant to make sophisticated semiconductors for both firms.
A combination would also streamline capital allocation and the necessity for separate boards to approve initiatives that increasingly cross over both firms. Scale is the upside capacity for investors.
Tesla shares would get exposure to Starlink and launch services, while SpaceX investors would receive access to Tesla's automotive, energy and robotics companies. But the hazards are substantial.
Combining the two would result in a corporation with national-security scrutiny, China exposure, governance problems and a far wider range of pricey projects. What's next to watch is if Musk moves from vocal support to a formal proposal.
I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Averytin News Financial update.