Musk's $3.6 trillion Tesla-SpaceX merger plan targets Mars and AI

Elon Musk is evaluating a merger of Tesla and SpaceX, which would create a company with a $3.6 trillion market capitalization, ranking among the world's largest firms. The deal aims to fund massive AI investments. The combined entity would have generated roughly $43 billion in revenue and over $5 billion in profits in the September quarter. It would hold about $135 billion in cash and investments, with combined debt near $50 billion. A merger could trigger immediate vesting of Musk's performance-based incentives, potentially adding hundreds of billions to his wealth. Regulatory hurdles include US government contractor relationships, antitrust concerns, and potential opposition from China, where half of Tesla's EV production occurs.