CNBC reported May 27 that Tesla and SpaceX, including rocket and AI operations, are considering a merger based on a Tesla employee and others familiar with talks. Wedbush analyst Dan Ives estimated an 80% chance and said plans were already set to fuse operations across Elon Musk’s two largest holdings. Ross Gerber argued Musk’s prior integration of xAI into SpaceX supports a move toward a single AI-driven company like a Berkshire Hathaway model. Kalshi shows 52% odds of a mega-deal by May next year. The piece claims SpaceX’s expected $1.75 trillion market cap makes its shares potentially overpriced currency to buy Tesla, even at that valuation, while Tesla faces vulnerability without SpaceX amid dwindling profits and a still-expanding valuation. David Trainer of New Constructs said the merger is the only way to bail out Tesla shareholders and matches long-standing investor expectations.
"At an expected market cap of $1.75 trillion, SpaceX stock looks vastly overpriced (and, as I've written, an IPO prominent analysts are saying they'd avoid). So Musk could marshal its inflated shares as currency to pay big for Tesla, even making the deal at its current market cap, a number that's also over the top based on any conventional metric."
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