All eyes are on the SpaceX IPO — the world’s largest in historical past — and its CEO Elon Musk. However lest you neglect, there may be one other publicly traded firm within the Musk universe that many imagine 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, though 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 “may make Elon’s life a bit simpler.”
There’s proof that SpaceX is already making ready for one. The corporate amended its S-1 registration document forward of its public debut to incorporate new language in its threat components part about mergers and acquisitions. The added sentence, which reads “We might problem 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 crucial for a small-scale deal; it seemingly means Tesla.
As a reminder, Musk is kind of snug 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.
