"Elon Musk is running some of the world's most valuable companies. But they've been doing business with each other long before recent merger chatter around Elon Inc. The billionaire leads five major companies: Tesla, SpaceX, Boring Company, Neuralink, and xAI, which recently absorbed his social media company, X. Over the last three years, those companies have stepped up their internal dealings, buying one another's products, exchanging software and materials, and announcing investments worth billions of dollars."
"The result is a tightly knit corporate ecosystem with Musk at its center. For consumers and Tesla's many fans, that kind of vertical integration can look like a strength. Musk has argued that closer ties between his companies make them more resilient to geopolitical risk and supply-chain shocks."
""Done correctly, inter-company connections make a lot of sense," Lou Whiteman, a contributing analyst at The Motley Fool, told Business Insider. "The important thing is to ensure good governance is in place, so that, for example, Boring is paying a fair price for Tesla vehicles.""
Elon Musk leads five major companies—Tesla, SpaceX, Boring Company, Neuralink, and xAI (which absorbed X). The companies increasingly do business with one another, sharing employees, buying products like batteries and vehicles, exchanging software and materials, and making multibillion-dollar investments. SpaceX is slated to contribute components to Tesla's upcoming Roadster, and xAI's Grok is integrated into Tesla vehicles and Optimus demo bots. Supporters view deeper integration as vertical-strength that boosts resilience against geopolitical risks and supply-chain shocks. Critics warn that the arrangement concentrates power around Musk and raises governance concerns given allied members on Tesla's board.
#elon-musk #inter-company-integration #vertical-integration #corporate-governance #tesla-spacex-collaboration
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