Future of Tesla and SpaceX
The future of Tesla and SpaceX is largely seen through the lens of a potential merger between the two companies, driven by Elon Musk's long-standing ambition to consolidate his ventures. This prospect generates strong opinions among Users, with concerns ranging from financial implications for shareholders to the strategic direction of the combined entity.
Potential Merger and Financial Implications
Many Users discuss the likelihood and consequences of a Tesla and SpaceX merger, often expressing skepticism about the benefits for existing shareholders.
**Musk's desire for an "Everything Company"**: Some Users believe Musk's lifelong obsession with an "Everything Company" named X is a driving force behind a potential merger, noting his previous ventures and acquisitions. "Musk has a very childish lifelong obsession with owning an Everything Company called X. Hence the SpaceX, xAI, and X formerly known as Twitter."
Concerns about shareholder value: There are significant worries that a merger could disadvantage Tesla shareholders, especially if SpaceX acquires Tesla at a price that undervalues Tesla's future potential or if it allows Musk to bypass performance goals. "If SpaceX IPOs on a super thin float with a valuation that is looking fifteen years into the future and then uses that valuation to acquire $TSLA at something not too far from the current price, it seems like the SpaceX holders will effectively steal the pending robotaxi runup from $TSLA holders."
Avoiding legal issues and securing payouts: Some Users suggest a merger could be a move to circumvent legal scrutiny over incestuous financial dealings between Musk's various companies or to trigger large compensation packages for Musk. "Just his incestuous fuckery between the companies could easily force him to merge them to avoid lawsuits or even criminal charges."
Strategic Direction and Valuation Concerns
Users frequently debate the strategic rationale behind a potential merger and question the current valuations of both companies.
Tesla's shift in focus: Many observe that Tesla's strategic focus is moving away from traditional vehicle manufacturing towards robotaxis and humanoid robots, which some see as a departure from its original mission. "Its been obvious for a few years now that the future tesla is betting on is robotaxi and humanoids, which at that point becomes less about vehicle production and electrification and auto, and all in on services and autonomy."
Overvaluation and hype: A common sentiment is that both Tesla and SpaceX are significantly overvalued, with their stock prices often driven by hype and speculation rather than fundamental financial performance. "Tesla still today is insanely overvalued."
Cannibalization and cash burn: Users express concern that the companies' financial health could be compromised by internal cannibalization of resources and that a merger might serve to hide ongoing cash burn in less profitable ventures. "His big multicompany only serves to hide the insane cash burn and unprofitability of several ventures with the only profitable arm being Starlink."
Government Influence and Market Manipulation
Government contracts and subsidies: SpaceX's reliance on government contracts and subsidies is frequently highlighted, suggesting that this support plays a significant role in its valuation and operations. "85% of SpaceX revenue comes from contracts with the US Government."
Influence on index funds: There's a belief that SpaceX's stock might be fast-tracked into major stock indexes, compelling retirement funds and other passive investors to buy shares regardless of fundamental value, potentially creating "bag holders." "The NASDAQ changed their rules, they said they won't wait for SpaceX to show their market value by waiting a year like every other company. They are just going to let SpaceX pick a number, wait 2 weeks, and then weight that number into the indexes saying that everyone investing in the index needs to buy this much stock."
Musk's perceived control: Many Users feel that Elon Musk exerts undue influence over the companies and the market, leading to decisions that prioritize his personal gain over shareholder interests. "This has been the swindle each time. Musk owned most of Twitter and took on lots of debt."
Are these concerns about a potential merger and its implications for shareholders broadly shared among investors?
Bottom line
Some Users point to government contracts and alleged market manipulation as factors influencing the perception and financial standing of Tesla and SpaceX.
Comments (0)
No comments yet. Start the conversation.