The possibility of a merger between Elon Musk's SpaceX and Tesla is now being discussed in US financial circles with the question of 'when'. According to Bloomberg, investors believe the two tech giants are getting closer despite Musk's past rejections.
SpaceX President Gwynne Shotwell told the Wall Street Journal, 'There is undoubtedly complementarity between Tesla and SpaceX.' Shotwell also stated in an interview with CNBC that there is 'a convergence that we are all trying to achieve in the future' between the two companies.
The common ground of artificial intelligence
The most important link connecting electric car manufacturer Tesla and rocket company SpaceX is seen as artificial intelligence. While Tesla focuses on humanoid robots, SpaceX acquired the X Artificial Intelligence company last February and plans to build data centers in space.
According to estimates, artificial intelligence will become SpaceX's largest revenue source starting this year. Since Tesla's previous investments in X Artificial Intelligence were converted into SpaceX shares after the acquisition, Tesla currently holds a small stake in SpaceX.
Musk has already begun to benefit from joint production for the two companies at his 'Terafab' semiconductor factory in Texas. This facility will produce chips for Tesla's electric vehicles and driving robots, as well as specialized chips for SpaceX's satellites.
The need for massive investment and competitive pressure
Artificial intelligence infrastructure, especially building data centers, requires massive investments. According to Bloomberg, a merger could enable the two companies to access the financing they need for artificial intelligence more easily and cheaply.
Musk wants to control the entire artificial intelligence supply chain, from semiconductors to data centers in space. However, the massive investments in artificial intelligence by rivals such as Anthropic, OpenAI, and Alphabet (Google) are creating serious competitive pressure on Musk's companies.
Tesla's challenging position and the merger scenario
While intense competition in the electric vehicle market is challenging Tesla, it is stated that its shares could lose value if the merger does not happen. Dave Mazza, CEO of financial advisory firm Roundhill, told Bloomberg, 'If there is no deal, there will be no quick solution to maintain Tesla's price.'
In terms of market value, SpaceX is ahead of Tesla (1.6 trillion dollars) with approximately 2.1 trillion dollars as of early July. Therefore, in a merger, SpaceX is expected to acquire Tesla. According to Bloomberg, SpaceX could offer Tesla investors a share exchange ratio.
If the merger is completed, the new company's market value will approach 4 trillion dollars, making it the world's fourth-largest company after Nvidia, Alphabet, and Apple.
Control and approval process
At SpaceX, Musk controls more than 80% of the voting rights despite owning 42% of the company by splitting shares into A (one vote) and B (10 votes). At Tesla, he owns about 20% and does not hold a majority of voting power.
According to Texas law, where both companies are headquartered, a merger requires the approval of two-thirds of shareholders. While this approval seems guaranteed at SpaceX thanks to Musk's control, it is stated that most small investors at Tesla are inclined to vote in line with Musk's call.
