Countdown for the 3.5 trillion dollar giant

Significant progress has been made in the negotiations regarding the merger of SpaceX, the space and satellite company owned by Elon Musk, and electric car manufacturer Tesla. According to Bloomberg, based on sources familiar with the matter, the boards of directors and advisory teams of the two companies are conducting final negotiations on the terms of the merger and the management structure of the new company.

While it is possible that the public announcement regarding the merger will be made in December, the option of postponing the announcement to the beginning of 2027 is also being considered within the company. The schedule of the meetings has not been finalized yet.

A 3.5 TRILLION DOLLAR GIANT MAY BE ARISED FROM THE MERGER

SpaceX's market value is 1 trillion 900 billion dollars, and Tesla's market value is 1 trillion 571 billion dollars. The total market value of the two companies reaches 3 trillion 471 billion dollars, approximately 3.5 trillion dollars.

This size could take the combined company to the top among the world's most valuable companies. For comparison, the $3.5 trillion total also exceeds the combined market capitalizations of Broadcom at $1 trillion 739 billion and Saudi Aramco at $1 trillion 702 billion.

AUTOMOBILE, SPACE AND SATELLITE BUSINESS UNDER ONE ROOF

If the merger takes place, electric cars, energy storage batteries, rocket launch activities and satellite communications will be gathered under a single company. Thus, one of the largest company mergers in history will come to the fore.

In its notification of third-quarter financial results, Tesla announced that it had established a special committee consisting of independent board members to evaluate various options for deepening its relationship with SpaceX. Among the options in question was the merger of the two companies.

However, Tesla emphasized that there was no assurance that the merger would be finalized. In order for the possible agreement to be implemented, the positive recommendation of the special committee and the approval of the shareholders after the parties reach an agreement are required. Therefore, there is no final merger agreement announced to the public yet.

CHINESE OPERATIONS AND DEFENSE CONTRACTS MAY BE OBSTACLED

According to sources speaking to Bloomberg, there are significant obstacles to be overcome before the agreement is signed. Chief among these is how Tesla's foreign operations, especially its Chinese activities, will be separated from the structure of the combined company.

Keeping Tesla's joint venture structures and data flows in China separate from SpaceX are among the issues that need to be resolved in the design of the merger's corporate and management structure.

Another important topic is SpaceX's contracts with the US Department of Defense. It is stated that these agreements may bring national security investigations to the agenda. The partnership and control structure of the two companies needs to be created to meet the sensitivities in question.

POLITICAL BALANCES WILL ALSO BE AFFECTED IN THE USA

It is considered that political developments in the USA may also be decisive in the unification process. According to the news, Democrats, who regained control of Congress after the US midterm elections, signaled that they would investigate Elon Musk's business relations and political activities.

For this reason, the merger is seen as an important test for Musk's companies, not only commercially but also politically.

TESLA INVESTORS MAY ALSO PARTNER IN THE SPACE SECTOR

The possible merger will bring together Musk's two most important assets under the same roof. For Tesla shareholders, this step will mean not only investing in the automobile manufacturer, but also an indirect partnership in space and satellite communication activities.

For SpaceX investors, the merger could provide access to a more liquid and public investment platform.

In addition, after the merger, the company's management structure, rules regarding related party transactions and the review schedule of regulatory authorities will be topics that investors will closely monitor.

SpaceX and Tesla have not yet made an official statement regarding the progress made in the talks. Market sources state that the details of the merger may become clear in the coming weeks.