SpaceX and Tesla Merging: Elon Musk takes action
Elon Musk announced that he is evaluating a giant merger plan between SpaceX and Tesla to strengthen artificial intelligence (AI)-focused infrastructure and software investments. While the boards of directors of both companies form special committees regarding the matter, a potential merger decision will be subject to shareholder approval.
Slowly losing its position in the automotive market, Tesla continues to fall behind its Chinese rivals. As the authority of the US-based automotive giant wavers, Tesla CEO Elon Musk is preparing for a new move.
Billionaire Elon Musk announced that they are considering merging aerospace company SpaceX, where he serves as chairman of the board, with electric vehicle manufacturer Tesla. Announced during a meeting with analysts on Tuesday, this potential move, if realized, will be the largest corporate merger in history with a total market value of $3.68 trillion.
According to Musk's statement, the boards of directors of both companies have formed special committees to evaluate the matter. The main driving force behind the merger idea stands out as artificial intelligence (AI) infrastructure and the need for massive computing power.
Artificial Intelligence (AI) Infrastructure Brings the Two Companies Closer
According to Barclays analyst Dan Levy's assessment, the main reason behind the merger is artificial intelligence (AI) vertical integration. Tesla's driverless vehicle Cybercab, Optimus robot, and electric vehicles will be able to directly benefit from SpaceX's Grok artificial intelligence (AI) platform and Starlink satellite network.
In addition, the two companies are jointly developing a $17 billion artificial intelligence (AI) chip factory in Texas. Having SpaceX data centers utilize Tesla's solar energy products is also among the targeted synergies.
How Did the Merger Reflect on Company Figures and Shares?
Following the announcement, markets experienced a rally. SpaceX shares rose by 3 percent to $386.47, while Tesla shares reached $159.31 with an increase of approximately 8 percent. This rise added $64 billion to Elon Musk's personal fortune, bringing his total wealth to $989 billion.
The merger in question could go down in history, surpassing Vodafone's $200 billion acquisition of German company Mannesmann in 2000. The financial and operational data of the companies are as follows:
| Company | Market Value | Operational Information |
|---|---|---|
| SpaceX | $2.15 Trillion | Rocket launches, Starlink internet, AI leasing |
| Tesla | $1.53 Trillion | Production of 1.65 million vehicles last year, Cybercab testing |
On the other hand, Tesla's third-quarter vehicle deliveries came in at 486 thousand. Although this figure shows a slight increase compared to the previous quarter, it fell behind the 497 thousand deliveries in the same period last year.
Obstacles and Process Ahead of the Decision
Of course, approval from shareholders of both companies is required to complete the giant merger. Since Elon Musk owns shares in both companies, he is not participating in the work of the special committees formed to avoid conflicts of interest.
In addition to shareholder approval, it is noted that the process could be caught up in scrutiny by regulatory authorities in China and Europe. Eric Talley from Columbia Law School emphasizes that Chinese officials might harbor surveillance concerns due to full integration, while Europe might approach the giant SpaceX-Tesla structure with reservations on security grounds.
How Does This Situation Affect Drivers and Consumers?
The potential merger could provide direct and seamless connectivity for Tesla vehicle owners over the Starlink satellite network. Artificial intelligence (AI) processing power leased by SpaceX could be used in the Cybercab, whose driverless tests have begun, and other autonomous vehicles.
Additionally, SpaceX's financial resources will provide support for the billions of dollars in budget spent on autonomous driving technologies by Tesla, whose sales are slowing down against Chinese rivals.
This article was translated from Turkish. Read the original article in Turkish.
