Tesla Is Becoming Something Other Than a Car Company

SpaceX stated that any potential merger with Tesla would require Elon Musk's approval, despite his recusal from talks due to conflicts. Musk previously endorsed the idea, forming special committees to discuss it. SpaceX's filing noted no decision has been made, and further approvals are needed. Analysts expect a merger, but disagree on terms. Musk's comments may delay the process and raise shareholder concerns, according to insiders.

Elon Musk has proposed merging SpaceX and Tesla, forming a $3.5 trillion entity. SpaceX, valued at $2 trillion, focuses on space tech and AI, while Tesla, valued at $1.5 trillion, is known for electric vehicles and robotics. Musk believes the merger would be beneficial, though analysts note potential challenges, including regulatory hurdles and political risks. The deal requires majority approval from Tesla shareholders.

General Motors (GM) announced a new centralized computing architecture for its vehicles, supporting both gas and electric powertrains. The system, debuting in the 2028 Cadillac Escalade IQ, aims to reduce complexity, improve software features, and enhance connectivity. GM claims 40x more computing power, 30% less wiring, and 50% faster cellular connectivity. The move is part of GM's strategy to compete with Tesla and other automakers in offering advanced software-defined vehicle features.

Nasdaq fell 2.6% as tech stocks declined due to earnings concerns and AI spending worries. Meta (META) dropped 7% despite revenue beat, citing higher AI costs. Tesla (TSLA) fell 3.1% after reporting lower earnings and increased expenses. Procter & Gamble (PG) rose 5.6% on strong earnings. Oil prices rose 3% to $100.06 per barrel.

Tesla (TSLA) reduced its capital expenditure plans by $5 billion, but Morgan Stanley analyst Andrew Percoco maintains a forecast of 5 million Cybercabs by 2040. Percoco cites Tesla's expansion plans and progress in fleet density. Tesla's Cybercab fleet in Austin has grown 10x since launch, with 300 vehicles operating 6 a.m. to midnight. The service will expand to Dallas in November, reaching nearly 2 million unsupervised miles by Q3 end.

Larry Ellison reportedly pledged Oracle (ORCL) and Tesla (TSLA) shares as collateral for loans, expanding borrowing with five banks before his son's Warner Bros. Discovery deal. Oracle's proxy confirms Ellison pledged 413 million ORCL shares, up from 346 million. Ellison canceled a plan to sell 50 million ORCL shares, opting for collateralized borrowing instead.