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Elon Musk Disproves The Rumors Of The Merger Between His Two Companies Tesla And SpaceX

Elon Musk, the man who is holding the post of the Chief Executive Officer at both the firms including SpaceX, which is privately held and Tesla, a publicly traded company, recently revealed in a blog post on Tuesday, that he has no serious intention to merge the two companies at all. This followed a series of tweets made by Musk regarding the companies. In one tweet, the man also told that he is planning to take Tesla private, in the near future. This move is, in a way, resembling the structure of the other company SpaceX.

The two companies are different than one another in not just one but many ways and therefore the plans to merge the companies do not make that much of a sense actually, if one aspect is to be considered. While Tesla focuses on producing electric vehicles and batteries, SpaceX is more about building as well as launching the rockets in to the outer space.

SpaceX is actually one of the most valuable companies in the list of the private companies across the world, valued at a whooping $28 billion. I theory, the company can take Tesla private through a buyout of the same, and therefore the rumors. The only point of concern here is the target share price of Tesla, which is at $420, making the company worth $71.3 billion, and thus making it beyond the reach of SpaceX, at least in the present conditions. Musk, after denying the rumors, said that Tesla’s shareholders might still be able to trade shares even after the company goes private, giving an example of Fidelity’s SpaceX Investment.

Earlier as well, companies have gone private through a buyout and one such example is the case of Dell, which acquired EMC in a similar manner, a few years ago in 2015.

Rhys Burke

Rhys completing a bachelor’s degree, he continued his education to earn two master’s degrees. While Rhys focuses much of his writing career on genres like business entertainment, his unique style of writing is seen in other areas as well. Rhys grew up in Orange County, California as what many would consider privileged. However, he never wanted anything handed down, instead preferring to work hard to accomplish his own goals.

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