In Brief

All eyes are on the SpaceX IPO — the world’s largest in history — and its CEO Elon Musk. But lest you forget, there is another publicly traded company in the Musk universe that many believe will someday merge with SpaceX.

We’re talking about Tesla, which has a current market cap of about $1.52 trillion. Musk, who also leads Tesla, has pitched it as an AI and robotics company, even though the bulk of its revenue still comes from selling EVs. Some see a merger with SpaceX as a critical step to achieving that vision.

SpaceX president and COO Gwynne Shotwell seems open to the idea. During an interview with CNBC, Shotwell said a merger “might make Elon’s life a little easier.”

There is evidence that SpaceX is already preparing for one. The company amended its S-1 registration document ahead of its public debut to include new language in its risk factors section about mergers and acquisitions. The added sentence, which reads “We may issue a significant amount of equity in connection with future transactions,” is a warning to investors of future dilution. A warning like that wouldn’t be necessary for a small-scale deal; it likely means Tesla.

As a reminder, Musk is quite comfortable bringing the disparate pieces of his portfolio together. SpaceX acquired Musk’s AI company, xAI, earlier this year. And xAI acquired Musk’s social media company, X, in an all-stock transaction the year before.

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