Tesla-SpaceX Merger Is Coming: Biographer Tells Investors, ‘You’re Investing In Elon Musk, Not Procter & Gamble’
Article excerpt
Elon Musk’s biographer Walter Isaacson believes Tesla and SpaceX will eventually merge into a single company. In a CNBC “Squawk Box” interview on Thursday, Isaacson pointed to the companies’ existing collaboration on Terafab - the massive joint semiconductor fabrication plant under construction in Austin - as evidence of deepening ties that he expects to grow. “Elon Musk is always moving engineers back and forth, moving designs back and forth between his companies,” Isaacson said. “So I think your analyst is right. That’s in his heart. He wants to make this one big company.” Isaacson also expressed confidence that SpaceX would become “a tremendously valuable company,” citing its role in low-Earth orbit internet, direct-to-cell service and potential orbital data centers. He acknowledged some shareholder frustration over SpaceX’s February acquisition of Musk’s xAI startup, which diluted existing investors. But he downplayed the complaints by recalling similar backlash when Tesla bought SolarCity in 2016 - a deal many shareholders called dilutive. “This is the way he’s built these trillion-dollar companies,” Isaacson said, adding that investors in Musk’s ventures are ultimately “investing in Elon Musk,” not in any single business. “If you don’t like the way Musk is going to do something, you should be investing in Procter...
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In the first quarter, Tesla also invested $2 billion in SpaceX.
