Is the share swap also complete?...Wall Street 'stirred' by rumors of SpaceX (SPCX) and Tesla (TSLA) merger

▲ Tesla (TSLA), SpaceX (SPCX)/AI generated image

The possibility of a merger between SpaceX (SPCX) and Tesla (TSLA) has been raised. As overlapping areas across CEO Elon Musk's business empire increase, investors are re-evaluating the potential for the two companies to combine.

According to the U.S. economic news outlet Barron's on July 7 (local time), Wedbush analyst Dan Ives predicted that the two companies would merge in 2027. Musk has not officially confirmed the merger. However, SpaceX fueled market speculation by warning in its amended IPO filings that it could issue a significant amount of equity in future transactions.

The strategic connection between the two companies is focused on the field of artificial intelligence. While Tesla expands its autonomous driving and humanoid robot businesses, SpaceX acquired xAI in February to catch up with companies like Anthropic. Bloomberg Intelligence modeling analyzed that artificial intelligence could become SpaceX's largest revenue driver starting this year.

Financial ties have also become closer. SpaceX mentioned Tesla 88 times in its listing documents. It disclosed spending at least $1 billion on Tesla batteries to power xAI data centers and purchasing Cybertrucks worth $131 million. Tesla also became a shareholder as the $2 billion it invested in xAI was converted into SpaceX equity.

Musk explained that Tesla, SpaceX, and xAI would converge around solar-powered AI satellites. The two companies are also collaborating on the construction of Terafab, a semiconductor manufacturing plant in Texas. This plant plans to produce chips for Tesla's electric vehicles and robotaxis, as well as chips for SpaceX's orbital AI satellites.

Combining the values of the two companies could create a giant enterprise worth approximately $4 trillion. Currently, SpaceX's enterprise value is about $2.1 trillion, surpassing Tesla's $1.6 trillion. If a merger proceeds, SpaceX is likely to take the lead in the acquisition. However, investors are closely watching for potential shareholder value dilution, governance issues, and regulatory scrutiny.

[Key Article Summary]

-The acceleration of the AI business convergence between SpaceX and Tesla has raised the possibility of a merger between the two companies in 2027.

-SpaceX mentioned Tesla 88 times in its listing documents, disclosing close financial ties including battery and vehicle purchases.

-If the two companies merge, a super-large AI and space company with an enterprise value of approximately $4 trillion is expected to be born.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*