Musk Eyes Tesla-SpaceX Merger; Prediction Markets Price In Potential Deal

Elon Musk $TSLA says Tesla $TSLA and SpaceX are exploring a potential merger, with prediction markets already pricing in deal probabilities. Musk indicated SpaceX aims for 13 gigawatts of compute capacity by end-2027, pivoting toward AI infrastructure revenue.

SpaceX posted strong third-quarter earnings, beating expectations, with Pivotal Research raising its price target. Analysts suggest the satellite company's AI computing expansion could unlock significant new revenue streams as SpaceX rents excess capacity to enterprises.