Three of Elon Musk’s companies — SpaceX, xAI, and Tesla — are in play for a potential merger. While the talks appear to be in the early stage, according to reports from Bloomberg and Reuters, it could eventually lead to at least one company folding into SpaceX. Two scenarios are being hashed out. In one, SpaceX and Tesla would merge, per Bloomberg, citing unnamed insiders. In another, SpaceX and aXI (which already owns Musk’s social media platform X) would combine. According to reporting by Reuters, a ...

Core Insights - Elon Musk's companies, SpaceX, xAI, and Tesla, are exploring potential merger scenarios, with discussions reportedly in early stages [1][2] - Two primary merger scenarios are being considered: one between SpaceX and Tesla, and another between SpaceX and xAI [1] - A merger between SpaceX and xAI could precede a planned SpaceX IPO this year, consolidating various products under one corporation [2] Company Developments - Recent corporate filings indicate the establishment of two new entities in Nevada, suggesting Musk is keeping merger options open [3] - SpaceX has previously invested $2 billion in xAI, and Tesla has also made a similar investment, indicating a trend towards resource sharing among Musk's companies [5] Valuation and Market Position - xAI was valued at $80 billion following its acquisition of X, which was valued at $33 billion, while SpaceX's secondary sale valued it at $800 billion, making it the most valuable private company in the U.S. [6]

Elon Musk announced his new company xAI which he says has the goal to understand the true nature of the universe.Tesla sold $430 million worth of its giant backup batteries called Megapacks to xAI, Elon Musk's artificial intelligence startup, in 2025, according to a filing on Thursday. The sales to xAI accounted for around 3.4% of Tesla's energy business revenue, which climbed 27% to $12.8 billion last year from $10.1 billion in 2024, the filing said. Tesla's energy division, which sells solar photovoltaics ...

By Echo Wang and Joey Roulette NEW YORK, Jan 29 (Reuters) - SpaceX is exploring deals with other companies helmed by serial entrepreneur Elon Musk, leaving investors working through permutations between space, autonomous driving and artificial intelligence to analyze which combination makes the most sense. The rocket maker is in discussions to merge with xAI ahead of a blockbuster public offering planned for this year, Reuters reported on Thursday. The combination would bring ​Musk’s rockets, Starlink ...

This is CNBC's Morning Squawk newsletter. Subscribe here to receive future editions in your inbox.Happy Thursday. It seemed like Federal Reserve Chair Jerome Powell's go-to answer yesterday was "I have nothing for you on that," which he told reporters at least five times during his press conference.Stock futures are little changed this morning. The three major indexes finished yesterday's session with modest gains.Here are five key things investors need to know to start the trading day:1. Front and centerU. ...

Core Viewpoint - Tesla Inc. is shifting its focus towards robotics and autonomous driving, planning a $20 billion investment this year to support this transition as its traditional vehicle sales face challenges [1]. Group 1: Investment and Strategic Focus - The company aims to scale up production, enhance factory operations, and expand the output of Optimus humanoid robots and Robotaxi vehicles [2]. - Tesla plans to invest approximately $2 billion into xAI, Elon Musk's artificial intelligence startup, despite a previous unsuccessful shareholder vote [4][7]. - The investment in xAI is expected to strengthen Tesla's capabilities in developing AI products and services [5]. Group 2: Production Changes - Tesla is halting production of its Model S and Model X vehicles, reallocating resources in Fremont, California, to focus on Optimus production [3]. - The Model S and Model X are considered low-volume vehicles compared to the more affordable Model 3 and Model Y [3]. Group 3: Financial Performance - Adjusted earnings per share for the quarter were reported at 50 cents, exceeding analyst expectations and marking a positive sign amid declining EV demand [9]. - Tesla reported a 9% decline in 2025 vehicle deliveries compared to the previous year, with a sharper 16% drop in the fourth quarter [10]. - Revenue from regulatory credits fell by 22% in the fourth quarter, indicating a reduction in this revenue stream due to regulatory changes [12]. Group 4: Autonomous Driving Initiatives - Tesla aims to expand its robotaxi business to several major cities, including Dallas, Houston, and Miami, in the first half of the year [14]. - The company has begun rolling out robotaxis without human driver supervision in Austin, a significant milestone in its autonomous driving efforts [15].

Key TakeawaysFrance is set to host a G-7 Finance call on Tuesday to coordinate international support for Ukraine's energy grid, following Russian attacks that have left millions without power.The South African Rand (ZAR) has strengthened past 16/$ for the first time since June 2022, driven by record gold prices and an improved economic outlook.OPEC+ delegates indicate the group is likely to maintain its supply pause in March, amid signs of a global oil market surplus.Canadian Prime Minister Mark Carney affi ...

Group 1: Semiconductor Industry - Nvidia CEO Jensen Huang reported "very high" demand for H200 artificial intelligence chips in China, with production restarted and export licenses being finalized with the U.S. government [2][3] - H200 sales are expected to be in addition to Nvidia's previously shared $500 billion two-year forecast, with the Chinese market potentially worth $50 billion annually [3] Group 2: Media and Entertainment - Warner Bros. Discovery's board unanimously rejected Paramount Skydance's hostile takeover bid, citing it as "inferior" to Netflix's $72 billion deal [5][6] - The board emphasized the compelling value and clear path to closing of the Netflix deal, providing protections for shareholders [6] Group 3: Technology and AI - xAI, led by Elon Musk, raised $20 billion in a funding round, exceeding its $15 billion target, with investments from Nvidia, Cisco, Fidelity, and Baron Capital Group [7] - xAI operates the social platform X and has faced regulatory scrutiny due to issues with its Grok chatbot, but secured a contract with the Department of Defense for its AI agents platform [8]

Core Insights - Tesla's board is exploring potential investments in xAI, with a majority of shareholders supporting the investment during a recent meeting, although many abstained from voting [1][2] - Elon Musk expressed that if it were solely his decision, Tesla would have already invested in xAI, which has quickly gained a valuation of $50 billion after raising over $12 billion since its founding in July 2023 [2] - The interconnectedness of Musk's ventures, referred to as "The Muskonomy," has led to previous investments, including SpaceX's $2 billion investment in xAI and xAI's acquisition of X in an all-stock deal [3][6] Investment Context - The proposal for Tesla to invest in xAI was submitted by a Tesla investor who emphasized the importance of maintaining control over AI developments rather than outsourcing them [6] - Musk's past investments have faced scrutiny for potential conflicts of interest, notably the acquisition of SolarCity, which led to a lawsuit alleging misuse of funds due to Musk's familial ties to the company [7][8] - Despite the controversies, Musk's ventures continue to integrate and support each other, with Tesla being positioned as an AI company revolutionizing various sectors [6]

Core Points - Tesla is preparing for a significant shareholder meeting on November 6, where key issues regarding the company's future and CEO Elon Musk's performance will be voted on [1][2] - The company has faced political controversies and declining sales, leading to questions about Musk's leadership and Tesla's investment in AI [2] - A proposed $1 trillion pay package for Musk is a central topic of contention, with potential implications for his role as CEO [3][4] Shareholder Meeting Context - The meeting will address Musk's proposed pay package, which could be worth up to $1 trillion over the next decade, following the rejection of a previous $56 billion plan by a Delaware judge [8] - Musk's compensation is contingent upon achieving ambitious milestones, including raising Tesla's market cap to $8.5 trillion by 2035 and selling 12 million vehicles annually [9] - The board has warned that failure to approve the pay package could result in Musk leaving the company [4] Controversy Surrounding Compensation - Proxy advisory firms ISS and Glass Lewis have recommended that shareholders reject Musk's pay proposal, citing concerns over excessive power and lack of oversight [10] - Musk has publicly criticized these firms, referring to them as "corporate terrorists" during a recent earnings call [10] Investment in AI - Tesla is seeking shareholder approval for an investment in Musk's AI startup, xAI, which has quickly gained value and raised over $12 billion [12][13] - xAI's valuation reached approximately $50 billion in 2024, and it has been involved in significant transactions, including acquiring X in an all-stock deal [12][13] Interconnected Ventures and Accountability - Concerns have been raised about potential conflicts of interest due to Musk's involvement in multiple companies, including Tesla, SpaceX, Neuralink, and xAI [14] - Tesla's board has rejected numerous shareholder proposals aimed at increasing accountability, although some proposals have made it to the ballot [15][16] - Proposed measures include amending bylaws to limit derivative lawsuits and integrating sustainability metrics into executive compensation [17]