Elon Musk wants to bring Tesla and SpaceX together in a deal that could create a $3.5 trillion technology giant. Both companies have formed independent special committees to examine a merger, but no terms have been agreed and Musk admits the outcome is uncertain. The market reaction has been notably restrained for Tesla, whose shares gained less than 2% in extended trading following his comments. The market response suggests investors might be asking how the deal can create value without overwhelming Tesla’s existing business. The strategic logic is of course compelling, but there could be valid questions too.
Why Musk may want this merger
