TechFlow reports that on June 1, Fortune analysis suggested that if Elon Musk pushes for a merger between SpaceX and Tesla, the combined entity could be valued at $3.4 trillion—SpaceX’s projected valuation stands at approximately $1.75 trillion, while Tesla’s current market capitalization is about $1.65 trillion.
The report states that SpaceX may need to issue new shares equivalent to 94% of its existing equity to absorb Tesla. Meanwhile, Tesla’s GAAP earnings over the past 12 months have declined from $15 billion in 2023 to $3.9 billion; its core operating profit—excluding regulatory credits and Bitcoin-related gains—is approximately $2.3 billion. Fortune notes that this deal could rank among the largest mergers and acquisitions in history.
