Wall St pushes to have SpaceX save Tesla
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.
- There’s growing speculation Tesla and SpaceX could merge — here’s why a deal would make sense
- The case for Elon Musk to combine Tesla with SpaceX
- Why Tesla Could Merge With SpaceX
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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In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
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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.
- There’s growing speculation Tesla and SpaceX could merge — here’s why a deal would make sense
- The case for Elon Musk to combine Tesla with SpaceX
- Why Tesla Could Merge With SpaceX
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.
Readers!
Please consider supporting my work here at Behind the Black. Your support allows me the freedom and ability to analyze objectively the ongoing renaissance in space, as well as the cultural changes -- for good or ill -- that are happening across America. Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Only now does it appear that Washington might finally recognize this reality.
In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
You can support me either by giving a one-time contribution or a regular subscription. There are four ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation or subscription:
4. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above.
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.
The Big Short 2: Electric Car Boogaloo.
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.