Commentary: The merger is to reduce the number of earnings calls.

Some commentators suggest that Elon Musk's main reason for wanting to merge Tesla and SpaceX is that he does not want to hold eight earnings calls a year. This is an inference from outsiders, not a reason given by Musk himself.

Both companies are publicly listed and have quarterly earnings calls, totaling eight. SpaceX President Gwynne Shotwell said on CNBC on the day of the listing in June that a merger might make Musk's life a bit easier. She did not limit the reason to earnings calls.

At the Tesla earnings call on July 22, Musk was asked by a Wells Fargo analyst about the merger and replied that he could not discuss it during the earnings call and must follow proper procedures. On September 15, at the All-In event, he sat next to Shotwell and said that with so many layers of cooperation, who could imagine what actions might be taken. There is no board approval, no terms, and no completion date.

What exists are contracts, not a merger. Tesla's general counsel stated that there are multiple mutually beneficial transactions between the two parties, deepening their relationship through an investment and a framework agreement. Tesla's CFO mentioned in the July meeting that about $1 billion of net profit comes from the market value gains of its SpaceX shares. One report listed the market values of the two companies as approximately $1.47 trillion and $1.21 trillion, respectively.

Cathie Wood predicts that the two will merge and that an announcement could come by the end of the year. She also sees China as an obstacle: SpaceX has U.S. national security contracts, while Tesla wants to do business in China. The market previously estimated a 20% probability of an announcement by 2026.

If a buyer occurs, it would involve exchanging shares of one listed company for control of another; the seller would need to follow formal procedures with two boards of directors. The situation is still driven by implications, not a transaction. Funding remains in cross-shareholdings and framework agreements, benefiting from having one less set of disclosed controlling parties, while putting pressure on investors who expect separate pricing for cars and rockets from eight earnings calls.

Source: Public Information