Tesla may soon become part of a tech triumvirate, according to a new report.
Elon Musk confirmed on Monday that SpaceX and xAI (the company that operates X social media platform) are merging to create a new company with an estimated $1.25 trillion valuation.
“SpaceX has acquired xAI to form the most ambitious, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile device communications and the world’s foremost real-time information and free speech platform,” the announcement said. “This marks not just the next chapter, but the next book in SpaceX and xAI’s mission: scaling to make a sentient sun to understand the Universe and extend the light of consciousness to the stars!”
With an expected IPO on the horizon, one top analyst firm now thinks it’s just a matter of time before the new company merges with Tesla, which is worth roughly the same on its own.
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“Musk wants to own and control more of the AI ecosystem and step by step the holy grail could be combining SpaceX and Tesla over the next 12 to 18 months in some form,” Wedbush wrote in a note to clients on Tuesday.
“SpaceX and xAI combine…Tesla next? In our view there is a growing chance that Tesla will eventually be merged in some form into SpaceX/xAI over time. The view is this growing AI ecosystem will focus on Space and Earth together…..and Musk will look to combine forces,” Wedbush Global Head of Tech Research Dan Ives said.
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Tesla invested $2 billion in xAI in January and has been shifting away from its original electric vehicle focus and into energy storage, solar power and robots. Regardless of what happens to the corporate structure, there is a merger of Tesla and SpaceX technology coming on April 1.
That’s when Tesla is scheduled to reveal the final production version of its second generation Roadster sports car, which Musk said will be available with a SpaceX package that uses cold gas thrusters to improve its acceleration and handling while enabling it to “fly” for short distances. “I think it has a shot at being the most mind-blowing product demo of all time,” Musk said of the planned reveal.
However, during the company’s latest earnings call in January, he suggested Tesla might not stick the landing on the April 1 reveal date.
“I really think long-term, the only vehicles that we’ll make will be autonomous vehicles with the exception of the next generation Roadster which we’re hoping to debut in April,” Musk said during the call. Tesla’s Chief Financial Officer Vaibhav Taneja reiterated the point by adding, “hopefully”
Musk had previously said, “I have some deniability because, like, I could say I was just kidding. But we are actually tentatively aiming for April first for what I think will be the most exciting, whether it works or not, demo ever of any product.”
