Analysis: If SpaceX merges with Tesla, a $3.4 trillion supercompany could be born

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Golden Finance reports that on June 1st, Fortune analyzed that if Elon Musk pushes for a merger between SpaceX and Tesla, the new company's valuation could reach approximately $3.4 trillion, with SpaceX valued at about $1.75 trillion and Tesla's market capitalization around $1.65 trillion. This would become the largest corporate merger and acquisition deal in history, nearly three times the size of the current largest M&A case. However, the financial viability of this deal faces skepticism.
Analysis suggests that SpaceX would need to issue new shares amounting to about 94% of its current equity to complete the acquisition, and Tesla's profitability has significantly declined in recent years, with its GAAP net profit dropping from $15 billion in 2023 to about $3.9 billion. After excluding regulatory credits and Bitcoin gains, core operating profit is only about $2.3 billion. The report believes this move is more about leveraging market expectations of a high valuation for SpaceX's IPO to support Tesla, rather than an M&A driven by traditional financial metrics.
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