Analysis: If SpaceX were to merge with Tesla, a $3.4 trillion mega corporation could be born

BlockBeats News, June 1st, according to Fortune analysis, if Musk pushes for a SpaceX and Tesla merger, the new company's valuation could reach around $34 trillion, with SpaceX valued at approximately $17.5 trillion and Tesla at about $16.5 trillion. This would become the largest M&A deal in history, nearly three times the size of the current largest deal.

However, the financial rationale of this deal is being questioned. The analysis suggests that SpaceX would need to issue new shares equivalent to about 94% of its current shares to complete the acquisition. Additionally, Tesla's profitability has significantly declined in recent years, with its GAAP net income dropping from $15 billion in 2023 to around $3.9 billion, and its core operating profit, excluding regulatory credits and Bitcoin gains, is only about $2.3 billion.

The report suggests that this move is more like using the market's high valuation expectations for a SpaceX IPO to support Tesla, rather than being a merger driven by traditional financial metrics.