Comment by aresant
2 days ago
This was 100% precursor to the absorption of Tesla into SpaceX and I’m here for it
https://finance.yahoo.com/markets/stocks/articles/tesla-spac...
2 days ago
This was 100% precursor to the absorption of Tesla into SpaceX and I’m here for it
https://finance.yahoo.com/markets/stocks/articles/tesla-spac...
This would be a horrible deal for Tesla investors.
Long-term investors would lose about 40% of their investment to subsidize the inflated valuation of X (bought by xAI), the inflated valuation of xAI (bought by SpaceX), and SpaceX (whose valuation is based on the assumption that demand for inference is effectively unlimited, and that everyone will prefer hardware in space over Earth).
The valuation of both companies was inflated prior to acquisition, and Tesla shareholders will be asked to dilute their investment by absorbing that cumulative inflation.
Not even to mention that Musk would have exclusive control over the entire conglomerate, with not even the pretense of a Board to check his power.
When even Steven Mark Ryan is like "let's pump the breaks a little bit," you know it's bad.
It’s about Elon’s control over these companies. Creating a valuable company with durable revenue that produces products that the market actually wants, with stable governance by a board representing the shareholders of the company? Bah! What am I, a sucker?
He wants control, so that he can use investor’s cash to do epic stuff like humanoid robots, cyber trucks, an AI that tells you that apartheid was actually cool, rocket cars, real life brain controlled robot bacon chungus, etc.
> SpaceX (whose valuation is based on the assumption that demand for inference is effectively unlimited, and that everyone will prefer hardware in space over Earth).
Well, that and being the only reusable rocket company ever with an even bigger version on the horizon and a global Internet service that's about to get a whole lot better thanks to aforementioned rocket. Both of which are hugely profitable.
Rockets and Internet service are a tiny part of the valuation. It's mostly imaginary AI related sales.
3 replies →
Yeup. In 2025–
“Other shareholder meetings are snoozefests but ours are bangers. Look at this. This is sick.”
Elon’s pay package: he gets 400 million Tesla shares if he raises the market cap of tesla(xspacextwitterxAIx) to $8.5 trillion (nominal). He spent a cool 250 mil on making friends with the republicans, so as to ensure that his incoming epic awesome merger is not blocked.
A merger, plus the amount of inflation this government has already produced over the next decade, will probably see X co hitting Elon’s salary goals.
Yes, let's combine Twitter, an AI company, and a space company with a solar company, car company, battery company, and robotics company, so that we can have one huge valuation that can't be possibly delivered upon and losses will be absorbed for a short period. What could go wrong?
Have you heard of the concept of Conglomerates?
In the US, GE makes your microwave, aircraft engines, and also the gas turbine your power plant uses.
Siemens makes appliances, MRI machines, and even nuclear reactors I believe.
Or in Korea: Samsung, Hyundai, LG. Samsung makes chips, TVs, washing machines.
Japan: Mistubishi makes washing machines and excavators and mining equipment.
India: Reliance has cell phone service, grocery stores, and oil rigs. Tata makes cars, has tier 1 datacenters, and runs hotels too.
This is hardly a novel idea.
Interestingly conglomerate market caps are punished by the market.
The only recent exception is Samsung because of memory suddenly costing 10x.
Samsung makes a lot more than that. Well, lots of them make a lot more than what is listed, but Samsung pretty much has division for everything.
Japanese companies manage fine doing this kind of thing.
Japanese keiretsu also usually have a bank at their center or have both horizontal and vertical integrations. Where they don't have integration, they at least have financial integration. Whatever Musk is doing is far less cohesive in every way.
4 replies →
Do they have a gigantic tumor like twitter and Space AI slapped on the side? If all of the products were profitable it would work.
6 replies →
What about Tesla's management style would you call Japanese?
4 replies →
It would almost be as big a monstrosity as Amazon
but... All elon companies. More valuable bundled, because all the elon lovers don't have to pick where they throw their tithes. I'd love it even more if they throw in a tunnel construction and a human brain implant company in the mix while they are at it.
Tesla-Yutani
Add weapon and tank and they will reach the scale of Samsung.