SpaceX-Tesla Merger Would Create $3.4T Giant With Negative Earnings

Executive Briefing

• Combines Tesla's $1.65T and SpaceX's projected $1.75T IPO valuation into a $3.4T entity
• Requires SpaceX to issue shares equal to 94% of current stock, nearly doubling share count to 8B
• Projects combined pro-forma GAAP earnings at approximately minus $1 billion annually
• Highlights how sky-high tech valuations can mask fundamental profitability challenges