Tesla Investors Question Potential SpaceX Merger

Tesla investors are asking key questions regarding a possible merger with SpaceX amidst growing speculation about the two companies.

Speculation is intensifying among Tesla investors regarding a potential merger with SpaceX, following recent discussions and concerns about the future directions of both companies.

In a recent forum, investors posed questions about how CEO Elon Musk would manage his ambitious compensation plan, which necessitates achieving a series of challenging goals to access the full $1 trillion payout. These goals include selling 20 million electric vehicles, securing 10 million Full Self-Driving subscriptions, and deploying 1 million robotaxis along with Optimus robots.

The Q&A platform saw a significant influx of inquiries focused on the rumored merger, with at least 20 questions specifically addressing this topic, indicating investors’ keen interest and concern.

Ross Gerber, a long-time investor in Tesla and CEO of Gerber Kawasaki, has commented on the matter, expressing his expectations for the merger topic to be addressed during Tesla’s upcoming Q2 earnings call. “I expect management to downplay it, because on the surface it does not create obvious value for either company. It would be complicated, distracting, and difficult to structure in a way that makes everyone happy,” Gerber noted, while acknowledging the primary focus among investors has shifted to Tesla’s slow progress in the rollout of its robotaxis.

Despite the uncertainty surrounding the potential merger, he hinted that a connection between Tesla and SpaceX is likely, given the growing interest in SpaceX’s innovative growth narrative compared to Tesla’s current challenges in the electric vehicle market. Gerber remarked, “If investor interest continues shifting away from EVs and toward SpaceX’s growth story, a merger may become a way to reframe Tesla around Elon’s stronger innovation platform.”

Moreover, the connection between the two companies is far from new; they have previously collaborated on various projects, including Musk’s Terafab chip-building initiative. SpaceX’s president, Gwynne Shotwell, also acknowledged the possible benefits of a merger, noting, “That might make Elon’s life a little easier, actually. There’s no question that there’s synergies between Tesla and SpaceX in our futures, definitely, there’s a convergence of a kind of what we’re all trying to accomplish in the future.”

The conversation around a merger is taking place against the backdrop of SpaceX’s remarkable IPO, which raised $86 billion last month, further amplifying discussions about the future strategies of both companies as they navigate their respective industries.