Musk considers merging Tesla and SpaceX into single entity
Elon Musk is exploring a merger between Tesla and SpaceX, potentially creating a $3.5 trillion conglomerate. Deutsche Bank analysts suggest the timing aims to avoid regulatory hurdles under a potential Democratic administration.
Elon Musk is considering merging Tesla and SpaceX into a single entity dubbed 'Elon Inc.' by the New York Times. The merger would combine AI, rockets, satellite networks, electric vehicles, robotaxis, and humanoid robots. Both companies have established committees to review the merger, with Musk recusing himself due to conflicts of interest. The combined entity could be valued at $3.5 trillion.
Tesla's Q3 revenue stagnated at over $28 billion, while profit fell 44% to $787 million due to heavy investment in non-revenue-generating areas like robotaxis and robots. Tesla's Model Y and Model 3 recorded 66,000 new registrations in Europe in September. Deutsche Bank analysts suggest Musk may aim to complete the deal before the next US presidential elections to avoid regulatory hurdles under a potential Democratic administration. While the merger aims to pool resources for AI and space projects, investors may view the conglomerate structure negatively compared to distinct business models.