Musk Puts Possible SpaceX-Tesla Merger on the Table After Strong Earnings
Musk had independent committees review the terms; together, the companies would hold more than 30,000 bitcoin, while Tesla reports earnings later this week.
Key Takeaways
- Elon Musk confirmed that SpaceX and Tesla are exploring a possible merger through special committees of independent directors.
- SpaceX and Tesla together hold 30,221 bitcoin, which would make a combined company one of the largest corporate bitcoin holders.
- Investors are focusing on SpaceX’s strong quarterly results and Tesla’s earnings later this week.
Elon Musk has confirmed that SpaceX and Tesla are exploring a possible merger. That would mean the billionaire’s two companies together hold more than 30,000 bitcoin. At the same time, investors are looking at SpaceX’s strong quarterly results and Tesla’s earnings later this week.
Merger Under Independent Committees
Musk said during the SpaceX quarterly call that both companies have formed special committees of independent directors to review a possible combination. According to him, those committees are allowed to work out the terms of any potential deal, while he himself is not taking part in those talks because of his interests in both companies.
He called a merger a good idea, but stressed that shareholders would ultimately have to approve it. According to Musk, there is still no agreement on the terms of a deal. For now, then, this is an exploration, not an announced transaction.
More Than 30,000 Bitcoin Together
The possible combination is also relevant for the crypto market. According to the figures mentioned, SpaceX holds 18,712 BTC and Tesla holds 11,509 BTC, for a total of 30,221 BTC. That would make the combined company one of the largest corporate bitcoin holders in the world.
For crypto investors, that scale stands out in particular because it shows how large the bitcoin position is at two of Musk’s best-known companies. This is not about a new buy or sale, but about what would happen to those balance-sheet assets if the companies ever merged.
Investors Are Watching Tesla
The timing makes the news especially sensitive for investors. SpaceX reported revenue of $14.58 billion (€13 billion), well above the expected $12.7 billion (€11.3 billion), and earnings per share of 35 cents versus an expectation of 15 cents. The company also said capital expenditures rose to $19.59 billion (€17.5 billion), of which $16.44 billion (€14.7 billion) went to AI.
Based on market expectations, attention is now mainly on Tesla, which reports earnings later on Wednesday. Analysts are expecting revenue of $28.13 billion (€25.1 billion) and adjusted earnings of 44 cents per share. SpaceX shares rose about 9% in premarket trading to $161 (€144).
The possible merger could also matter outside the crypto market, because a combined company would be worth about $3.49 trillion (€3.1 trillion) based on the figures mentioned. On top of that, such a combination could raise oversight questions, including because of SpaceX contracts with U.S. government agencies and Tesla’s production in China.
