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Twitter Elon Musk just confirmed that SpaceX and Tesla are formally talking about a merger.
It’s a huge move that could create the world’s 5th most valuable company. And it would setup SpaceX-Tesla to dominate the next 3rd phase of the AI boom.
Get urgent details here – before a merger announcement.
On the Q3 earnings call for SpaceX (Nasdaq: SPCX) Tuesday, Musk said both companies have formed special committees of independent directors to evaluate a merger. The committees were set up at the request of shareholders.
Because Musk runs both companies, he’s a conflicted party and can’t take part in the talks. That didn’t stop him from sharing his view.
“Do I think it would be a good idea? Yes,” he explained on the call.
A combined company would be worth roughly $3.5 trillion. SpaceX is valued at $2 trillion market cap and Tesla (Nasdaq: TSLA) is worth $1.5 trillion.
The combination could lock-in Elon Musk’s dominance of the 3rd phase of the AI revolution. And 5 hidden stocks could be among the biggest winners. Here’s a link to get the NAMES and tickers.
The timing lines up with SpaceX’s best quarter yet.
Revenue hit $14.6 billion, up 161% from a year ago, and net income came in at $4.4 billion versus a $1.1 billion loss last year. It was SpaceX’s first profit as a public company.
Musk outlined the places where the two companies already overlap. They include AI software, chip design, robotics, Starlink connectivity, and orbital data centers. The biggest is Terafab, the joint chip factory. Musk said the first Terafab test chip is targeted for mid-2027, with volume production in Q3 2028.
Musk was careful not to oversell it. The committees haven’t agreed on terms, and he said assuming a merger is a certainty “would be overstating it.”
The real hurdle is on the Tesla side. A deal would need approval from 50% of all Tesla shares, not just the ones that get voted. Musk called that “quite a high hurdle.”
Wall Street analysts think a deal will get done.
Barclays has suggested an announcement could come before Tesla’s annual shareholder meeting. Wedbush’s Dan Ives puts the odds near 80% that the two companies end up under one roof by the end of 2027.
Tesla reports its own Q3 results after the close today. Expect the merger question to come up again.
For now, the process is official and the founder supports it. The remaining step is getting the Tesla shareholders to agree.
Elon is going “all-in” on Phase 3 AI. That’s why he’s pushing for the merger to be completed in 2027.
Personally, I own SpaceX and Tesla and support the merger. And I think these two stocks will outperform in the coming years.
However, 5 hidden stocks could be critical partners and see huge gains in the coming months.
Simply click here for the details – before a deal is final.
Ian Wyatt
Editor, Daily Profit