Elon, meet Elon.
SpaceX and Tesla could eventually merge, according to Barron's and Bloomberg, which reported that a combination of Elon Musk's companies is "widely expected" by investors.
Rumors of a SpaceX-Tesla merger have swirled for months, Barron's reported. A combination of the companies could result in the biggest merger and acquisition deal in history, according to the financial outlet.
Barclays analysts wrote in an Oct. 14 note to clients that an announcement could come before Tesla's Dec. 3 annual meeting, according to Bloomberg. SpaceX had previously considered merging with Tesla before merging with xAI, Musk's artificial intelligence company, Bloomberg reported.
"The possibility of a Tesla/SpaceX merger has increasingly become the consensus
expectation," analysts for the bank wrote.
Bloomberg noted that the two companies have business ties, with SpaceX purchasing Cybertrucks and SpaceX purchasing utility-scale batteries through xAI. The two companies also have overlapping investor bases, according to the financial news outlet.
During an appearance at the All-In Summit in September, Musk hinted at the possibility of a merger when asked why the companies were separate.
"With all this collaboration, on so many levels, who can imagine what action one might take when there's so much close collaboration in so many areas," Musk said.
Tesla and SpaceX are developing Terafab, a semiconductor chip plant in Grimes County, Texas. Chips produced there are set to be used in hardware such as Tesla's Optimus robots and self-driving Cybercabs, as well as high-power chips designed to operate SpaceX’s space-based data centers, USA TODAY previously reported.
Both companies report third-quarter earnings this week, with SpaceX going first on Oct. 20 and Tesla following on Oct. 21. Tesla stock is down 18% year-to-date, while SpaceX stock is down 1.36% year-to-date.
About Tesla's redesigned Roadster
The public got a glimpse at what consumers could see from a merger when Tesla debuted the redesigned Roadster model on Oct. 15. The car was developed as a collaboration between the two companies as Tesla seeks to revamp one of its original tentpole offerings.
The two-seat vehicle drove upside down on a ramp using a suction system, turned in the air, and landed using built-in thrusters. Later in the event, it used the thrusters to jump over a truck and other vehicles, twisting in the air during the maneuver.
The use and legality of such features on public roads were not immediately clear.
Morningstar analyst Seth Goldstein said in a September note that the new Roadster would serve as a "halo model" at the top of the company's lineup.
The original Roadster, released in 2008 and in Tesla's lineup until 2012, was the company's first-ever electric vehicle and helped change public perception of the car class. But the revamp comes after years of missed deadlines and follows in the footsteps of other major announcements, such as the Cybercab, with long lead times to hit roads.
Tesla first revealed a prototype of the second-generation Roadster in 2017 and said then that deliveries would begin in 2020. It is not slated to enter production until 2028.
Some watchers saw the collaboration as Musk drumming up interest in a potential merger.
"It was an engineering flex with no commercial value beyond embarrassing traditional car makers," Gene Munster, managing partner at Tesla investor Deepwater Asset Management, said on social media following the event. He added that Musk "can't wait" to merge Tesla and SpaceX.
The Roadster's reservation page shows the Performance model requiring a $50,000 deposit within 10 days, a Thrust model requiring a $250,000 deposit, and an invitation-only Rocket model.
The reservation agreement says that Tesla "cannot guarantee when your vehicle will actually be delivered or if it will be delivered."
Musk and other executives did not specify any target prices during the demonstration, though Tesla nearly a decade ago quoted a base price of $200,000 for the vehicle.
Contributing: Thao Nguyen, USA TODAY; Reuters
This article originally appeared on USA TODAY: Could Tesla and SpaceX eventually merge? What we know
