SpaceX · Tesla · Elon Musk · Wall Street · Fortune Technology
Elon Musk says Tesla and SpaceX are weighing a $3.5 trillion merger—without him in the room
Compiled by KHAO Editorial — aggregated from 2 sources. See llms.txt for citation guidance.
◎ Multiple-sources
It’s official: Tesla and SpaceX are in talks.
Key facts
- Revenues for the third quarter fiscal 2027 year rose 161% to $14.58 billion, well above the $12.86 billion analysts expected, according to Visible Alpha consensus from S&P Global Market Intelligence
- At Tuesday’s closing prices, a combined Tesla-SpaceX would have a total market value of about $3.5 trillion, with SpaceX at about $2 trillion and Tesla at nearly $1.5 trillion
- Musk’s range would require about $42 billion to $83 billion a month by December 2027
- In his usual fashion, Musk offered up aggressively optimistic thoughts about the future of SpaceX, claiming SpaceX’s breakneck buildout pace implies annual recurring revenue of $500 billion to $1
Summary
“These special committees consist of independent directors, and because I’m a conflicted party, I can’t be in the discussions of the special committees,” said Musk, who was asked about a potential combination during the call. Tesla stock rose over 1% in after hours trading, while SpaceX rose above 5% following the Q&A with Wall Street analysts featuring Musk, SpaceX president and COO Gwynne Shotwell, and chief financial officer Bret Johnsen. Musk said the committees haven’t reached any kind of an agreement on the terms of a potential transaction, and there’s no guarantee that they will. “It’s an odd kabuki dance where two groups of people are talking and I can’t be in the conversation,” said Musk. At the same time, Musk has made clear he believes a tie-up would be a fine idea.