Amid SpaceX-xAI Merger, Ross Gerber Has This Important Question For Elon Musk-Led Companies: 'When They Are All Out Of…' - Tesla (NASDAQ:TSLA)
TeslaTesla(US:TSLA) Benzinga·2026-02-03 04:02

Core Viewpoint - The strategy of merging companies led by Elon Musk is being questioned due to potential cash flow issues faced by these companies [2][5]. Group 1: Financial Concerns - Ross Gerber highlighted that X was out of money and merged with xAI, which is also facing financial difficulties [2]. - xAI reported a loss of $1.46 billion in Q3 and spent nearly $7.8 billion in the first nine months of 2025, generating only $107 million in revenue during Q3 [3]. Group 2: Merger Details - The merger between SpaceX and xAI values SpaceX at approximately $1 trillion and xAI at around $250 billion, with expected share pricing for the combined company at about $527 [4]. - The merger could support Musk's ambitions for a space-based datacenter, which he has previously described as a cost-effective alternative to terrestrial datacenters [4]. Group 3: External Opinions - Investor Michael Burry expressed skepticism about Musk's approach, labeling him a "desperately incentivized futurist" in relation to the potential merger with Tesla [5].

Amid SpaceX-xAI Merger, Ross Gerber Has This Important Question For Elon Musk-Led Companies: 'When They Are All Out Of…' - Tesla (NASDAQ:TSLA) - Reportify