I hear news of a merger between Tesla and SpaceX... | |||||||
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| It is said that the merger is likely to take a stock-for-stock structure, where SpaceX, which has a larger market capitalization, becomes the acquiring entity and issues SpaceX stock to Tesla shareholders. What does this mean, and how should we respond? Since I hold both, I am considering buying a little more of each, and I was wondering what your thoughts are. | |||||||
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It only benefits Musk.
Due to concerns over share dilution and the weakening of shareholder influence from the strengthening of Musk's control, it faces opposition from shareholders, making the likelihood of it going through very slim.
That rumor is just bait trash news spread by Wall Street analysts to mislead clueless retail investors.