SpaceX and Tesla have set up committees of independent directors to consider a potential tie-up, Musk revealed on SpaceX’s third-quarter earnings call.
The committees were established at shareholders’ request, and Musk said he was excluded from their discussions because he is a conflicted party. He said he believes a merger would be beneficial but warned against assuming the two companies will necessarily combine.
A merger between SpaceX and Tesla would create a company worth about $3.6 trillion at current valuations, with more than 30,000 Bitcoin on its balance sheet.
Tesla reported holding 11,509 BTC in its latest filing, while SpaceX disclosed 18,712 BTC, potentially making the combined company one of the world’s largest public corporate Bitcoin holders, behind only a handful of dedicated treasury firms such as Strategy.
SpaceX rally lifts tokenized shares after earnings beat expectations
SpaceX shares climbed 9% in premarket trading on Wednesday following a third-quarter earnings report that beat analyst expectations, as Wall Street grew more optimistic about the company’s AI and connectivity businesses.
Barclays raised its price target to $300 from $254, and JPMorgan increased its target to $500 from $240. Wells Fargo, UBS, Citi, Bernstein and Goldman Sachs also raised their targets.
Still, Morgan Stanley maintained its $300 target, Bank of America kept its $235 target, and HSBC retained a Hold rating with a $150 target.
Tokenized SpaceX products also jumped. SPCXB, issued under Binance’s bStocks program, climbed more than 10% in 24 hours, and xStocks’ SPCXx rose about 9%, according to on-chain data.
Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.