Reports have surfaced about a possible merger between Elon Musk-led Tesla Inc. and SpaceX, bringing new attention to a post by the billionaire from last year. In the post, Musk seemed to tease possible mergers between his enterprises.
A ‘Convergence’
In November last year, Musk responded to influencer Sawyer Merritt after the latter shared a post detailing former Morgan Stanley analyst Adam Jonas’ views on possible collaborations between xAI and Tesla. Musk said, “My companies are, surprisingly in some ways, trending towards convergence.” At the time, Musk could be hinting at increased collaboration, but it raises the question: Was Musk teasing a merger the whole time?
My companies are, surprisingly in some ways, trending towards convergence
- Elon Musk
SpaceX IPO
The news comes as SpaceX is said to be preparing for an IPO this year, with talks of its public listing surfacing since Musk hinted at such an event at the Tesla annual shareholder meeting last November. The commercial space flight company could be set for a public debut in June this year, with a valuation of around $1.5 trillion. The timing is reportedly due to a rare cosmic occurrence on June 8 and 9, when the planets Jupiter and Venus will align diagonally in the sky, as well as Musk’s birthday on June 28.
Tesla’s Q4 Earnings
Meanwhile, Tesla held its fourth-quarter earnings call, which saw Musk announcing a push towards autonomous vehicles as Tesla discontinued the company’s Model S and Model X vehicles. The earnings call also saw Musk announcing the number of active Full Self-Driving (FSD) subscriptions, as well as Musk pushing towards in-house chipbuilding efforts with the ‘TeraFab.’
Market Performance
Tesla’s stock price slid 3.23% to $416.56 at market close on Thursday but jumped 2.45% to $426.78 during the overnight session. According to rankings, Tesla scores well on the Momentum metric and offers a favorable price trend in the Long term.
Future Developments
As the rumors of a possible merger between SpaceX and Tesla continue to surface, investors and fans alike are eagerly waiting to see what the future holds for these two innovative companies. With Musk at the helm, it’s likely that we can expect more exciting developments in the world of technology and space exploration.