Musk said to consider SpaceX potential merger with Tesla or artificial intelligence company xAI
Investing.com - In a potential blockbuster move, Elon Musk's SpaceX is exploring potential merger options with Tesla Inc (NASDAQ:TSLA) or artificial intelligence company xAI, Bloomberg reported, citing people familiar with the matter.
Shares of Tesla rose 4% in after-hours trading on Thursday amid the report. They were down 3.5% in intra-day trading following the company's fourth quarter earnings results after the close on Wednesday. The space exploration company has discussed the feasibility of combining with electric vehicle maker Tesla, a move some investors are advocating for, said the sources, who asked not to be identified because the information is private.
These potential consolidation moves within Musk's business empire could attract significant interest from infrastructure funds and Middle Eastern sovereign investors, according to several sources. Any transaction might require substantial financing, one person noted.
The discussions remain preliminary, with details subject to change. The companies might ultimately decide to remain independent entities, the sources cautioned. Other recent reports said SpaceX was close to going public.
Earlier Thursday, Reuters reported about a potential SpaceX-xAI tie-up, which would involve exchanging xAI shares for SpaceX shares.
Representatives for Musk, SpaceX, xAI, and Tesla did not immediately respond to requests for comment on these discussions.
