TSLA, SPCX Slip Overnight: Musk Reportedly Pushes Merger Before Trump’s Exit

Live updates

1. 2h ago

   Tesla and SpaceX Slip as Musk Pushes Merger

   Tesla and SpaceX shares slipped overnight and premarket following reports that Elon Musk is actively pushing for a merger between the two companies before Donald Trump exits office. Musk stated that both entities are officially exploring the combination, which aims to consolidate his corporate power into a single entity. The move could potentially serve as a loophole to secure a pay package valued near $1 trillion. However, the proposal has encountered resistance, creating what observers describe as a mess, while a Rivian executive publicly urged Tesla to stop holding these announcement calls.

   Why it matters

   The discussions follow recent corporate earnings and have immediately drawn intense scrutiny from market analysts and competing executives. Combining the electric vehicle maker and the aerospace manufacturer represents an unprecedented conglomerate structure that faces a complex path of negotiations and regulatory reviews. Market stakeholders are divided on the valuation implications, with ARK projecting distinct long-term outcomes while Morningstar recently adjusted Tesla fair value estimates.

   What is confirmed

   • Elon Musk stated that Tesla and SpaceX are officially exploring a merger.
   • Tesla and SpaceX shares slipped overnight and premarket following the merger reports.
   • Morningstar raised Tesla's fair value estimate to $475 from $450, citing stronger FSD adoption and lower spending assumptions.

   Still unconfirmed

   • Musk is reportedly pushing to lock in the merger before Trump's exit.

   What to watch next

   • Formal announcements regarding merger negotiation progress
   • Regulatory review and shareholder responses to the proposed deal structure
   Sources used for this update (16)

   1. help.naver.com — Futures Flat As Oil Rebounds After Trump's "Energy Ceasefire" Unravels, Memory Stocks Slide | ZeroHedge
   2. BBC — Tesla and SpaceX: Why does Elon Musk want to merge the companies?
   3. Bloomberg.com — Musk Tries to Lock In His Tesla-SpaceX Dream Before Trump’s Exit
   4. Reuters — EXCLUSIVE: Musk’s public endorsement of SpaceX-Tesla deal may throw a wrench in talks
   5. Fortune — Elon Musk’s dream merger is a nightmare for SpaceX shareholders
   6. Yahoo Finance — TSLA, SPCX Slip Overnight: Musk Reportedly Pushes Merger Before Trump’s Exit — ARK Sees Tesla Holders ‘5x Better Off’ By 2036
   7. NPR — Elon Musk says Space X and Tesla are considering a merger
   8. Yahoo Finance — TSLA, SPCX Slide Premarket: Musk’s Merger Talk Reportedly Creates ‘Mess’ — Rivian Exec Urges Tesla To ‘Stop Doing These Calls’
   9. WSJ — SpaceX Takes Conglomerate-Building to Sci-Fi Extremes
   10. Bloomberg.com — A Tesla-SpaceX Merger Would Make a Daunting Foe — For Now
   11. Reuters — Musk's political baggage clouds prospects for SpaceX-Tesla deal
   12. www.cnbc.com — Futures orbit around SpaceX as Tesla merger talk cheers investors
   confidence 90%