Tesla, SpaceX Boards Weigh Merger; Wall Street Eyes Vacant "X" Ticker

Special committees at Tesla (TSLA) and SpaceX (SPCX) are evaluating a potential merger, including deal structure and exchange ratio, with Elon Musk recusing himself over conflicts of interest. Based on reported valuations of about $2 trillion for SpaceX and nearly $1.5 trillion for Tesla, a combined group would be worth roughly $3.5 trillion. With the single-letter "X" ticker idle on U.S. exchanges since U.S. Steel's delisting following its Nippon Steel takeover, speculation is mounting that Musk would adopt it for the combined entity. "If it ultimately happens, nobody should be surprised to see 'X' back on the ticker tape," said Roundhill Investments CEO Dave Mazza. SpaceX's third-quarter revenue reached $14.575 billion, up 161% year over year, with net income of $4.404 billion. Its Superintelligence unit posted $7.56 billion in revenue, up 830%, surpassing Starlink as the largest segment. Capital expenditure totaled $19.593 billion, 84% of it for AI computing infrastructure. Tesla reported third-quarter revenue of $28.05 billion, capital expenditure of $4.73 billion and free cash flow of $1.53 billion. Barclays analyst Dan Levy said a full-stock acquisition would give Musk 53% to 56% voting power in the combined company.