Why a Merger With Tesla Could Be a Disaster for SpaceX

The article argues that a potential merger between SpaceX and Tesla would be detrimental to SpaceX investors. Tesla's valuation appears inflated at $1.53 trillion with a P/E ratio of 200, driven almost entirely by unproven future products like Optimus robots and full self-driving capabilities. Meanwhile, Tesla's core automotive business shows flat revenue growth and declining deliveries. SpaceX, which is experiencing rapid growth from its AI infrastructure business and profitable Starlink division, would overpay for Tesla's bloated valuation. The author recommends SpaceX investors reject the merger unless Tesla's price decreases or it demonstrates financial success with its autonomy products.