Will Elon Musk eventually merge SpaceX with Tesla? Speculation builds
CNBC • • business
Key Points:
- Wedbush analyst Dan Ives predicts a potential merger between SpaceX and Tesla by next year, citing Elon Musk's desire to control more of the AI ecosystem and the synergy between the two companies.
- Market speculation is mixed, with Kalshi traders assigning only a 33% chance of the merger occurring before May 2027, and recent fluctuations in perceived likelihood reflect uncertainty.
- Tesla faces competitive pressure in China, having been surpassed by BYD and other automakers in electric vehicle sales, which may influence the timing and strategic value of a merger with SpaceX.
- Both companies are collaborating on the Terafab semiconductor fabrication plant in Texas, a costly project that highlights operational complexities and the need for board approvals from both firms.
- Elon Musk and biographer Walter Isaacson have hinted at closer integration between Musk’s companies, with Musk acknowledging challenges in balancing shareholder interests during a recent earnings call.