Texas [US], May 27, (ANI): Elon Musk is reportedly exploring the possibility of bringing his rocket company SpaceX, and electric car company, Tesla, under one roof, even as the former heads for a listing in just over two weeks, a CNBC report said.
SpaceX, which makes rockets, offers a satellite internet service called Starlink, and also has the artificial intelligence (AI) unit xAI, shares resources with Tesla even as they collaborate to find solutions to common challenges around power and compute constraints, the reported quoted a person, familiar with details, as saying.
SpaceX was valued at around $1.25 trillion earlier this year when it merged with Musk's artificial intelligence company xAI. Musk, who holds majority shares in SpaceX, could become the world's first trillionaire as soon as next month when the shares make their debut on the exchange.
Musk hit the $500 billion net worth milestone last year and is the richest person in the world.
The SpaceX IPO could be the largest so far as the company prepares to list on Nasdaq and will trade under the symbol SPCX.
The documents filed by SpaceX with the Securities and Exchange Commission reveal key financial details about the space exploration company.
It made a total of $18.6 billion in revenue last year with a net loss of $4.9 billion. In the first three months of this year, the company achieved $4.7 billion in sales but made a net loss of $4.3 billion.
There are a lot of synergies between the two companies that they can capitalise on even as they navigate the challenges of integrating AI tools to improve performance.
SpaceX spent more than three-quarters of its capital expenditure of $10.1 billion on AI in the first quarter while Tesla is aiming to triple its capex this year to $25 billion.
Elon Musk and venture capitalist Ira Ehrenpreis are board members of both companies while Musk's brother Kimbal was a SpaceX director and is currently serving on Tesla's board.
Tesla also has a holding in SpaceX as the electric vehicle maker had bought shares worth $2 billion in xAI before it merged with the rocket company in February. (ANI)