'Elon Thinking Big,' Says Gene Munster As SpaceX Explores xAI–Tesla Tie-Up Ahead Of $1.5 Trillion IPO

Core Viewpoint - Elon Musk has sparked merger speculation as SpaceX explores a potential merger involving xAI and Tesla, preparing for a significant IPO valued at approximately $1.5 trillion [1][2]. Group 1: Merger Discussions - SpaceX is reportedly in internal discussions regarding a merger that could involve both Tesla and xAI, with an IPO targeted for June [2]. - The potential merger could position SpaceX as one of the most valuable publicly traded companies globally [2]. Group 2: Investment Insights - Gene Munster from Deepwater Asset Management estimates a 45% chance that Tesla will acquire xAI, a 35% chance that SpaceX will buy xAI, and a 20% probability that xAI will remain independent [3][4]. - Both SpaceX and Tesla have invested $2 billion each into xAI, indicating strong financial backing for the potential merger [4]. Group 3: Strategic Importance of AI - Musk's companies are expected to collaborate effectively, with SpaceX aiming to utilize xAI for "datacenters in the sky" and Tesla planning to leverage xAI's Grok chatbot for Full Self-Driving software and the Optimus humanoid robot program [6][9]. - If SpaceX acquires xAI, Tesla would still retain access to Grok, ensuring continued collaboration between the companies [6][9].