All eyes are on the SpaceX IPO — the world’s largest in historical past — and its CEO Elon Musk. However lest you overlook, there may be one other publicly traded firm within the Musk universe that many consider will sometime merge with SpaceX.
We’re speaking about Tesla, which has a present market cap of about $1.52 trillion. Musk, who additionally leads Tesla, has pitched it as an AI and robotics firm, regardless that the majority of its income nonetheless comes from promoting EVs. Some see a merger with SpaceX as a essential step to reaching that imaginative and prescient.
SpaceX president and COO Gwynne Shotwell appears open to the concept. Throughout an interview with CNBC, Shotwell mentioned a merger “would possibly make Elon’s life slightly simpler.”
There may be proof that SpaceX is already making ready for one. The corporate amended its S-1 registration doc forward of its public debut to incorporate new language in its danger elements part about mergers and acquisitions. The added sentence, which reads “We could difficulty a big quantity of fairness in reference to future transactions,” is a warning to traders of future dilution. A warning like that wouldn’t be obligatory for a small-scale deal; it doubtless means Tesla.
As a reminder, Musk is sort of comfy bringing the disparate items of his portfolio collectively. SpaceX acquired Musk’s AI firm, xAI, earlier this yr. And xAI acquired Musk’s social media firm, X, in an all-stock transaction the yr earlier than.
