Tesla-SpaceX Merger Imminent as Isaacson Predicts 'One Big Company'

Tesla and SpaceX are expected to merge into a single company, according to Elon Musk's biographer Walter Isaacson. In an interview on CNBC's Squawk Box, Isaacson pointed to the existing collaboration between the two companies on Terafab, a joint semiconductor fabrication plant under construction in Austin. He stated that Musk wants to make both companies one big entity and has been moving engineers and designs back and forth between them.

Isaacson expressed confidence that SpaceX would become 'a tremendously valuable company' due to its role in low-Earth orbit internet, direct-to-cell service, and potential orbital data centers. He acknowledged some shareholder frustration over SpaceX's acquisition of Musk's xAI startup but downplayed the complaints by comparing it to Tesla's purchase of SolarCity in 2016.

Isaacson emphasized that investors are ultimately 'investing in Elon Musk' rather than any single business, advising those who disagree with Musk's methods to invest in companies like Procter & Gamble. He also mentioned SpaceX's recent acquisition of the artificial intelligence coding startup Cursor for $60 billion and its option to acquire it for $10 billion.