Wall St pushes to have SpaceX save Tesla


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Three articles in the news today illustrate both the corruption of the press as well as a desire of one analyst on Wall Street to convince Elon Musk to use his success at SpaceX to save Tesla.

All three news articles are based on a single recommendation made by one Morgan Stanley research analyst. Thus, the headline in the first article is an outright lie. There isn’t growing speculation, there is one guy with an opinion, an opinion by the way that Elon Musk doesn’t appear to share, according to the third article.

Musk said last year that there was too little cooperation between Tesla and Space Exploration Technologies Corp. to justify merging the two, dismissing the idea that had been raised by one of Jonas’s colleagues as “quite tenuous.”

From SpaceX’s point of view, combining these companies makes little sense. It would essentially be using the success of SpaceX to prop up Tesla’s financial weakness.

Musk of course controls both companies, and can do this if he wishes. If I was Musk, however, I would keep the companies separate, and let the chips fall where they may. Musk however might care enough about Tesla that he might want to save it, using SpaceX’s profits. If he does, however, he will instantly weaken SpaceX, as it will then no longer have as much cash available to pay for its future plans, such as the Big Falcon Rocket.

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3 comments

  • ken anthony

    Elon does not like to lose so this is a real threat to SpaceX. He should cut Tesla loose, but I just can’t see him doing it.

    SpaceX matters. His other companies not so much. He would turn them loose if he can call them successes.

  • FC

    The Big Short 2: Electric Car Boogaloo.

  • wodun

    Musk is susceptible to public pressure from the media, so let’s hope he ignores this one.

    Tesla buying solar city kind of made sense because the panels could recharge the cars and the batteries for home/car could be similar. There isn’t any similarity between SpaceX and Tesla, which is too bad because it would be nice if Tesla was as professional as SpaceX.

    I bet the author, his clients, or company, has stock in Tesla and is worried it is going to tank. Telling that they would suggest a band aide rather than fix the core structural problems that are causing Tesla to struggle.

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