Tesla and SpaceX CEO Elon Musk has left the door open for a potential merger between the two companies. Musk pointed to close collaboration across multiple areas when asked about a combination at the All-In Summit, while market analysts advise shareholders to take no speculative action.
Chief Executive Officer Elon Musk addressed whether electric vehicle maker Tesla will merge with Space Exploration Technologies, known as SpaceX. He appeared earlier this month at the All-In Summit of influential thinkers, founders, and business leaders.
Tesla x SpaceX https://t.co/jJ438jodlY
Musk replied, Who can imagine what action one might take when there’s so much close collaboration in so many areas.
The operational and structural lines between Tesla and SpaceX are already blurred through shared projects, manufacturing initiatives, and technological overlap.
Tesla and SpaceX Collaborate on Microchips and AI
The most important active collaboration between the two companies is a microchip foundry named Terafab. This facility will serve both Tesla and SpaceX.
Other joint efforts are already underway or on the table. These include Starlink-connected Cybercabs, the use of Tesla-made battery-storage technology at SpaceX facilities, and the co-development of artificial intelligence capabilities. Tesla’s solar panel expertise factors into Musk’s long-term vision of transporting people to the moon or Mars.
Tesla spans electric vehicles alongside solar panels and battery storage profit centers. Its Cybercab robotaxi service recently surpassed 1 million miles of unsupervised, fully autonomous driving in Austin, Texas, with rapid expansion expected. Tesla is also developing its AI-controlled humanoid robot, Optimus, which Musk suggests could become the biggest product ever and be mass-produced and mass-delivered by the end of next year.
SpaceX owns X, which developed the built-in artificial intelligence assistant Grok. The company also operates the Starlink satellite-based broadband service supported by more than 11,000 orbiting satellites.
Analysts Advise Shareholders to Take No Action
Market analysts note that if a company is worth owning for its long-term potential, a potential suitor may eventually make a bid. Otherwise, outside companies are unlikely to show sufficient acquisition interest.
Musk leads both organizations. Major shareholders of one are frequently significant shareholders of the other.
There is no financial need or corporate interest in paying a premium at the expense of either group. Musk effectively controls both boards of directors, meaning he could meld the two organizations into one regardless of individual stock prices.
Who can imagine what action one might take when there’s so much close collaboration in so many areas.
Elon Musk, CEO of Tesla and SpaceX
Investors who favor SpaceX can hold shares in SPCX. Those who prefer Tesla can maintain a stake in TSLA, or choose to hold both.
