Speculation around SpaceX-Tesla merger builds up

Summary

CNBC's Seema Mody reports on speculation that Elon Musk has engaged in thought experiments about a SpaceX-Tesla merger. The report highlights shared talent, cross-collaboration on engineering issues, and the complexity of valuation given SpaceX's potential $1.5 trillion market cap. Starlink's profitability and the performance-based metrics Musk must meet are also discussed.

• Elon Musk has been thinking about a potential merger between SpaceX and Tesla.
• Both companies share key talent, including engineers and board members.
• A merger would raise complex valuation questions for shareholders.
• SpaceX's S-1 filing reveals performance-based metrics for Musk's bonus, including a $7.5 trillion market cap target.
• Starlink is highlighted as a highly profitable and growing part of SpaceX.
• American Airlines recently announced a deal to use Starlink Wi-Fi.
• Musk retains 85% voting power in SpaceX, reducing potential pushback on a merger.
• The report does not provide actionable investment recommendations.