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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.