Tesla, xAI and SpaceX Merger? Chamath Palihapitiya Floats 'Industrial Logic' For Union Of Elon Musk-led Companies: 'This Would Be Pretty Logical'
Billionaire investor Chamath Palihapitiya has proposed a potential merger between Elon Musk's companies: Tesla, xAI, and SpaceX. He argues that combining these ventures could create a transformative entity focused on AI and its applications across various realms. Palihapitiya refers to this idea as having 'industrial logic,' suggesting strategic alignment among the companies. This speculation follows Musk's previous interest in forming a holding company for his ventures. Tesla shares recently rose 1.17%, trading at $313.51, reflecting positive growth trends despite some short-term challenges.
Billionaire investor Chamath Palihapitiya sparked speculations regarding a potential megamerger between Elon Musk’s biggest ventures, xAI, SpaceX, and, of course, Tesla Inc. TSLA.
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What Happened: On Sunday, in a post on X, Palihapitiya made the case for a merger cascade between Musk’s ventures, xAI, which owns X.com, Grok, and more, with his space exploration, autonomous vehicles and EV plays.
He suggests that merging the three could give rise to a singular, transformative entity centered on “consciousness in all of its forms,” one that spans the physical, digital, and extraterrestrial realms.
“I’m here for it,” Palihapitiya says, adding that the outcome would be “pretty logical” in his opinion, with all three companies now centering around AI.
This comes amid growing interest in Musk’s expanding empire, and how artificial intelligence can bind them all together. Tesla is leaning heavily into self-driving and robotics, SpaceX is integrating machine learning into space navigation and satellite networks, while xAI, Musk’s latest venture, focuses on building artificial general intelligence.
In his post, Palihapitiya uses the term “industrial logic,” suggesting that he sees strategic alignment with such a merger. From Tesla’s hardware and xAI’s software, to SpaceX’s infrastructure plays, all aligned in a single, vertically integrated platform.
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Why It Matters: Nearly five years ago, Musk himself had approved of this idea to form a holding company named X, which would work as the parent company for his many ventures, such as Tesla, SpaceX, Boring and Neuralink.
This comes just months after Musk’s xAI acquired his social media platform, X.com, formerly known as Twitter, in an all-stock deal valued at $33 billion.
Musk’s SpaceX now plans to invest $2 billion into xAI, according to a report by the Wall Street Journal on Sunday, as part of a $5 billion funding round. This values the company at $113 billion.
Price Action: Tesla shares were up 1.17% on Friday, trading at $313.51, and are up 0.85% after hours.
According to Benzinga’s Edge Stock Rankings, Tesla shares score high on Growth, but lag behind on other metrics, with a favorable price trend in the medium and long terms, but unfavorable in the short term. Click here for deeper insights into the stock.
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