Commentator

Tesla - SpaceX Merger Since discussions regarding a potential merger between SpaceX and Tesla show no signs of ending, I would like to offer a brief statement with my thoughts on the matter here. There will be no merger involving a 1:1 valuation ratio between SpaceX and Tesla, as Tesla shareholders would not approve it. Why? Because SpaceX’s major cash flow streams lie in the future, whereas Tesla’s are already in the realization phase. Consequently, we are currently witnessing a rally in Tesla stock—one which, in my opinion, could climb relatively quickly to just about $700 once it breaks past its all-time high (ATH) of $500. Tesla stock represents tangible potential for cash flow, revenue, and profit that is largely situated in the short-to-medium term; SpaceX, conversely, must first build the necessary infrastructure—including in-orbit data centers—before it can realize its substantial profits and that will take time. Tesla shareholders are well aware of this fact and will therefore only consent to a merger if the terms of the exchange ratio reflect this reality. Since Elon is conscious of this, he will be compelled to assign a commensurate premium to Tesla stock—thereby making the merger proposal sufficiently attractive for Tesla shareholders to vote in favor of it. This holds true entirely irrespective of how SpaceX stock is valued or how it performs following its IPO. There are some voices predicting that SpaceX stock will surge immediately after its IPO, only to suffer a sharp subsequent decline; while this scenario may well materialize, it would have no adverse impact on Tesla shareholders. Elon will not proceed with a merger until SpaceX stock has established a solid trading foundation- a prerequisite that may, in and of itself, ensure Tesla shareholders receive a significant premium. Given these underlying conditions, Tesla shareholders stand to benefit in any scenario: both from the SpaceX IPO - thanks to the ensuing hype surrounding Elon’s ventures - and from a potential merger, which is unlikely to take place until 2027. None of us knows what will happen since stock markets, and particularly the price movements of individual stocks, are unpredictable yet I see not enormous risks, but rather opportunities for an increase in Tesla’s share price. $tsla

DRAMA SECURED: Brad Ferguson and Rebellionaire have crossed Eva Boomer Braun. $TSLA

$TSLA is ripping today and getting dangerously close to all-time highs again. The funny part? The bears are still stuck arguing about Tesla like it’s just a car company. Meanwhile Tesla keeps executing in AI, autonomy, energy, and robotics while the market slowly catches on.

JUST IN: 🇺🇸🇨🇳 Elon Musk says his son 'X' is learning to speak Mandarin as he is seen on trip with him in China.