Elon Musk confirmed on Tuesday at the SpaceX earnings presentation analyst conference that SpaceX and Tesla have each created a special committee to study a possible merger.
Together they would be worth around 3.5 trillion dollars: about 2 trillion for SpaceX and nearly 1.5 trillion for Tesla. Musk supports the idea and says that he will not participate in the negotiations, which is why he has created specific committees. If it materialises, it would be the largest merger in history. On paper, only Microsoft, Alphabet, Apple and Nvidia would be worth more.
Musk stated that the merger between the two companies would create a conglomerate that would encompass electric vehicles, energy storage, cars and satellites with the aim of harnessing artificial intelligence (AI).
Without having details of how it would be, the analysis team at Bankinter assigns a high probability that the operation would be executed as a share swap. With Tesla's market capitalisation (1.4Bn) and SpaceX's (2Bn) and with Musk's current power distribution, 20% of voting rights in Tesla and 82% in SpaceX, it would lead him to have the majority of the combined group (56%).
Additionally, on Thursday (the second day after the earnings release) a significant package of shares will be released (1.3 billion shares), which will cause an increase in weight in the indices.
