SpaceX and Tesla will report third-quarter results on consecutive days this week, giving investors a rare side-by-side look at Elon Musk’s two most valuable companies as merger speculation gathers momentum.
\n\nThe results will test whether Starlink’s steady growth and Tesla’s car profits can fund the AI spending powering the merger debate.
\n\n”In terms of metrics, it would have to be Starlink revenue growth more than launch counts and improvement in auto margins for Tesla,” said Shawn Campbell, an adviser at Camelthorn Investments who owns shares in both companies, describing investors’ focus for results.
\n\nBarclays suggested last week a deal could be announced before Tesla’s annual meeting, with SpaceX the likelier acquirer, though neither company nor Musk has officially committed to favoring a deal.
\n\nTesla on Monday said its annual meeting would be held on December 3.
\n\nIn an all-stock deal, Barclays estimates Musk would hold about 37% of the equity and 56% of the votes.
\n\n”A SpaceX acquisition of Tesla would be cleaner as it would make it easier to deal with the China business as an asset that is dealt with separately,” Campbell said.
\n\nTesla gave the speculation a showpiece on Thursday, unveiling a new Roadster sports car, slated…
Original source: https://www.cnbctv18.com/technology/
