Tesla climbs as SpaceX merger talks fuel Musk empire consolidation hopes

Group 1 - Tesla shares increased nearly 5% following reports of potential mergers involving SpaceX and Musk's AI startup, xAI, which could unify Musk's tech empire [1][2] - Investors have long sought consolidation among Musk's companies to enhance focus on Tesla's business, particularly as it aims to expand into AI and robotics [2][3] - A merger between Tesla, xAI, and SpaceX is expected to significantly benefit investors by aligning Musk's attention and resources more effectively [3] Group 2 - Tesla announced a $2 billion investment in xAI to support its ambitions in autonomous driving and humanoid robots, amid declining core EV sales [4] - xAI previously acquired X in a $45 billion deal, enhancing its access to social media data and distribution [5] - xAI raised $20 billion in a funding round, surpassing its $15 billion target, and is valued at $230 billion, with SpaceX committing $2 billion as part of a $5 billion equity fundraising [5]