Musk is preparing a mega merger of Tesla and SpaceX for the sake of AI – the FT estimated the risks

A possible merger of Tesla and Elon Musk’s SpaceX could become one of the largest deals in business history and fundamentally change the structure of his technological empire. According to the Financial Times, the potential merger represents a large-scale bet on the development of artificial intelligence and can affect the technology sector and the stock market.

According to the publication, the combined company could link developments in the field of AI, space technology, robotics and energy systems. For Musk's supporters, that would mean the emergence of a new tech conglomerate centered around artificial intelligence.

Managing partner of investment company Deepwater Asset Management Jean Munster noted that the scale of the proposed merger can cause a strong reaction from investors. According to him, we are talking about a company that has no direct analogues in terms of the scope of activity.

The merger could also strengthen Musk's control over the combined business. A Financial Times source close to Tesla's board of directors suggested that SpaceX could get about 85 percent of the combined company through its share distribution structure. In this case, the entrepreneur would retain control of a large part of his business empire.

The merger does not guarantee approval from investors. The Financial Times draws attention to the fact that large conglomerates often cause shareholders’ concerns due to the complexity of managing different business areas and the risk of reducing efficiency.

The possibility of combining SpaceX with Tesla or an alternative deal with Musk-owned company in the field of artificial intelligence xAI was discussed in January. One of the proposed areas of cooperation was the placement of computing centers for AI in space. In such a scenario, Tesla could supply energy storage systems, and SpaceX could ensure the launch of the necessary equipment.

The prospect of using Starship rockets to deliver Tesla Optimus robots to the Moon and Mars was also considered.

In early February, SpaceX announced the acquisition of xAI. According to Bloomberg, the value of the combined company was estimated at about $ 1.25 trillion, and the price of one share was $ 527.

The Financial Times estimated the potential cost of a combined Tesla and SpaceX at about $3.6 trillion. Among the possible advantages of the transaction, the newspaper highlighted the integration of developments in the field of AI, computing power and physical devices, as well as closer coordination of companies’ resources.

Musk himself previously supported the idea of unification. The boards of Tesla and SpaceX have formed special committees of independent directors to consider a possible deal, he said. At the same time, the entrepreneur said that he would not participate in the discussion because he is an interested party.