Key facts
- A potential SpaceX-Tesla merger is analyzed for its financial viability.
- The combined entity could have a valuation of $3.4 trillion.
- SpaceX's anticipated market cap is $1.75 trillion, Tesla's is $1.65 trillion.
- SpaceX would issue new shares equivalent to 94% of its current count to absorb Tesla.
- Tesla's trailing GAAP earnings have fallen from $15 billion in 2023 to $3.9 billion.
Elon Musk is reportedly considering a merger between SpaceX and Tesla, a move that would create an unprecedentedly large entity. The analysis delves into the financial implications, questioning whether the deal's structure, which involves SpaceX issuing a significant number of new shares to acquire Tesla, is financially sound given Tesla's recent earnings decline.