SpaceX is reportedly considering a merger with either Tesla or xAI, according to Bloomberg. If you’re a Tesla shareholder, you should be very concerned about what this means. The company is weighing two potential paths as it prepares for an anticipated IPO later this year.
Some investors are pushing for a SpaceX-Tesla combination, while SpaceX and xAI are exploring a tie-up ahead of the IPO. SpaceX is expected to go public by mid-2026 at a valuation potentially exceeding $1 trillion. Elon Musk is considering having one of his companies acquire another one of his companies, with Musk himself leading the negotiations on both sides.
This is the same playbook we’ve seen before, where Musk’s private interests are prioritized over those of his public shareholders. The critical issue here is that Musk owns a significantly higher percentage of xAI and SpaceX than he does of Tesla. When Musk negotiates the terms of any merger between these entities, he’s negotiating against himself, but his interests aren’t equally distributed.
As a result, it’s unclear who would get the better end of such a deal. Any merger involving Tesla would require Musk to fairly value the company, which is a challenging task given his history of prioritizing private investors over public shareholders. We’ve already seen how this plays out in the case of xAI, where the technology developed for Tesla’s Optimus robots may end up being owned by a different Musk company entirely.
The same person who convinced Tesla’s board to invest $2 billion in xAI is now determining what Tesla is worth in a potential merger. At every step, Musk’s private investors get rescued through favorable deal terms or Tesla shareholder money. It’s essential to consider the implications of this rumored merger on Tesla shareholders and the broader market.
As SpaceX prepares for its anticipated IPO, it’s crucial to examine the potential consequences of Musk’s actions and how they may impact the company's future direction.
This merger would likely prioritize Elon Musk’s interests over those of his public shareholders, which could have significant implications for Tesla's value and direction. As a result, it's essential for investors to carefully consider the potential risks and benefits of such a deal.
