On Tesla’s Q2 earnings call on July 22, Elon Musk hinted that a SpaceX-Tesla merger is possible, citing numerous collaborations and increasing overlap between the two companies. In mid-July, SpaceX, valued at $2.8 trillion, could have acquired Tesla ($1.6 trillion) by issuing 57% more shares. Since then, both valuations have dropped sharply: Tesla fell 24% (from $405 to $308) and SpaceX dropped 46% (from $211 to $113). SpaceX is now worth $1.49 trillion versus $1.22 trillion for Tesla, requiring the space company to issue 82% more shares to buy the automaker. SpaceX investors would now own only 55% of the combined entity instead of nearly two-thirds, suffering 45% dilution.
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