The Wall Street Journal has an article titled “SpaceX isn’t even public yet, Investors are Already Abuzz about a Tesla Merger”
I’ll post a snippet below, but this occured to me about a week, maybe 10 days ago, and I closed my Tesla short at a teensy loss: $414 to be exact. I kept waiting for it to turn positive, and it had been at a couple of spots across the journey, but I didn’t want to wait any longer even though I believe the stock is still wildly overvalued given Tesla’s near term prospects (Cybercab and/or Robotaxi notwithstanding). It pained me a little and it was oh-so-close but couldn’t get over that last tiny hurdle, and I finally gave in. It kept bumping against the resistance and I at last let reason get the better of me. (I’m net positive on Musk, have made a fair piece on the Twitter acquisition and lost my whopping $414 this time.)
It occured to me that it might be possible for him, as leading shareholder in both companies (SpaceX and Tesla) to merge them and give a dramatic pop to Tesla shares. I consider it an extremely low probability scenario, but with possible high risk to my position, so I dumped it. I saw what he did with Solar City to save it, and while this is a different beast I think it possible that he could do the same to boost Tesla given it’s “treading water” status for the past 5 years and his astonishing incentive to do so.
[Elon Musk] surprised onlookers with the [quick merger] between SpaceX and xAI. Now analysts, investors and close Musk observers are debating the merits of what some see as the ultimate combination: SpaceX and [Tesla].
As SpaceX [approaches an initial public offering], some investors are discussing the idea of a mega-Musk merger as a follow-up. Musk has said he thinks his companies [are converging], but he hasn’t commented on speculation of a merger.
Still, some Tesla supporters argue that combining the companies could accelerate Musk’s artificial intelligence ambitions by bringing his projects under one roof—and potentially create one of the most valuable companies in history
I remain short on Palantir and NVDA, fwiw. Both are green, at the moment.