Comment by fastball
3 hours ago
Seems unlikely now that both are separate public companies. Creative accounting acquisitions are somewhat more difficult in that context.
3 hours ago
Seems unlikely now that both are separate public companies. Creative accounting acquisitions are somewhat more difficult in that context.
Alternative take: if a SPCX-TSLA merger proposal is publicly announced, that will create market enthusiasm (quite possibly irrational) about “unlocking synergies” which will temporarily pump both stocks, thereby making Musk (and all the other insiders) richer, even if only temporarily.
Plus, the two firms already cooperate heavily, and Musk wants them to cooperate more, but being two separate public companies adds a lot of legal friction to that cooperation (each board has to review and sign off on things independently) and legal risks (shareholder lawsuits alleging they are cooperating in ways contrary to shareholder interests)
So I think, from Musk’s viewpoint, it is a very logical next step, which means it probably will happen sooner or later
They also want to continue to use Tesla as the piggy bank to offset the (vast) losses by the other companies. Once the "dump" phase is finished on the SpaceX pump-and-dump, Tesla will swoop in and buy SpaceX (or vice versa) in some all-stock deal and arbitrarily value it at $2 trillion.
I have a really dumb prediction that at some point he’ll name one of the public companies X, presumably either SpaceX or a merged company. The dumbest people in the world would say he’s turned Twitter into a $2tn company and he’d find that hilarious.