Ed Ludlow

Okay, coming up, SpaceX is considering a merger with Tesla or with XAI.

We have the Bloomberg reporting next.

This is Bloomberg Tech.

spacex is considering a potential merger with tesla or an alternative combination with ai firm xai that's all according to sources bloomberg's lauren grush who covers space kyle porter who's on the transportation beat and both of you involved in in the breaking this story last night uh join us now

Carl, I'm going to come to you.

What we know, two distinct proposed ideas, scenarios, transactions.

My understanding from sources is that SpaceX investors are particularly pushing this idea of a combination with Tesla.

Either way, highly unusual because we thought that SpaceX was on track for an IPO mid-year.

What do we need to know?

Well, they still may IPO this year.

There seems to be a lot of ideas kicking around at the corporate table.

It's certainly faster to do a combination between an existing public company than it is to do an IPO.

It's cheaper.

You don't have to have a bank come in and underwrite.

You don't have to do a roadshow.

But you also have real drawbacks to this.

You don't get to roll the pitch.

You could have a sudden share sell-off where people don't like what they see.

You're building a conglomerate, which historically people have not enjoyed investing in.

People don't feel that they can get enough visibility on the existing businesses.