Watch Desk posted an update
A possible Tesla–SpaceX merger could give Elon Musk a larger financial base for AI investment, analysts tell City AM. The companies’ boards are exploring a deal, but Musk says no terms have been agreed and there is no guarantee it will happen.
Why it mattersCity AM reports that SpaceX’s AI computing division generated $7.6bn in quarterly revenue, more than any of its other divisions, while Tesla holds about $45bn in cash. Wedbush analyst Steven Wahrhaftig says a combined company could also tap debt markets to fund expansion. That is a striking financing case for the merger, not proof the deal is inevitable or that the projected spending will pay off.
Discuss: How much should a merger’s AI ambitions matter when shareholders weigh its financial and regulatory risks?
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