Tesla Shares Rise After Hours On Reports Of SpaceX Eyeing Merger With EV Giant

• The report comes on the heels of Reuters reporting that SpaceX is also eyeing a merger with Musk-founded xAI ahead of its public offering. 
• The companies could even decide to stay separate, Bloomberg said.

SpaceX is reportedly considering a potential merger with EV giant Tesla Inc (TSLA) in addition to AI startup xAI.

Bloomberg reported on Thursday, citing people familiar with the matter, that the space launch provider has discussed the possibility of a tie-up between itself and the EV company. Billionaire Elon Musk is CEO of both the companies.

The report comes on the heels of Reuters reporting that SpaceX is also eyeing a merger with Musk-founded xAI ahead of its public offering.

Deal Financing

Any transaction could attract sizable interest from infrastructure funds and Middle Eastern sovereign investors, sources told Bloomberg, while adding that a deal might potentially require a large financing component.

The report also noted that no final decisions have been made and details pertaining to the proposed deals could change. The companies could even decide to stay separate, the report said.

TSLA shares rose 3% after-hours at the time of writing.

SpaceX Gears Up For IPO

The news comes on the heels of reports that SpaceX is contemplating an IPO as early as this year with a valuation over $1 trillion.

Earlier this week, Musk’s EV company Tesla also announced an investment of $2 billion in xAI, hinting at intensifying consolidation between Musk’s many companies.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around SPACEX was within the ‘bearish’ territory while sentiment around xAI trended in the ‘neutral’ territory at the time of writing.

Sentiment around TSLA stock , meanwhile, fell from ‘bearish’ to ‘extremely bearish’ territory, accompanied by ‘high’ message volume.

TSLA stock has gained 7% over the past 12 months. 

Read More: Why Did QNCX Stock Plummet Over 90% Today?

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on