The SpaceX-Tesla Alliance Would be the Decade Deal Ever

Previous Year Tesla collaborated with the grappling SolarCity and it Made Elon Musk CEO of both the companies. This merge didn’t incapacitate Tesla in 2017 as the stock of the company outpoured to almost $300/share and the collaborated enterprise smacked a market capitalization of more than $50 billion. But that doesn’t mean it was a great deal. The balance sheet of Tesla instantly became stuffed up with the debt of SolarCity, and basically the one that had been a carmaker abruptly turned out to be a all new solar roof product, at that moment when it was just the time for the Tesla team members to launch the mass-market Model 3 vehicle.

During this point the Model 3 is despondently behind the schedule, and although the solar roof is quite attractive, the Solar Side part of the Tesla business isn’t any more logical that it was just a year ago. Elon Musk is also the CEO of Space-X and last week only analyst Morgan Stanley and Adam Jonas, Tesla bull chaffed a union with Tesla, asserting that such type of agreement would yield strapping synergies. The financial techniques of how the merge of the Tesla-SpaceX would be happening are both unclear and hypothetical; in July Space-X increased $350 million, bringing it a worth to $21 billion. An IPO has been long explored.

Musk may not be willing to run two companies. But may be Musk is not willing to run another public company. Tesla doesn’t have adequate money for buying outright of SpaceX, so investors will have to largely depend on the stock-based-deal, and that makes sense.

However, the Tesla-SpaceX collaboration would lift a major problem; unlike the SolarCity, the company wouldn’t be moving a huge amount of debt to the balance sheet of Tesla. But if Tesla achieves anything positive from the SpaceX merger, then this could be the decade deal. The investors of SpaceX would receive a thicker payout and Musk would closely be able to avoid the pressure neatly for handling two rounds of financial quarterly reporting. On the other hand merging with Space X could also produce almost zero synergies.

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