Analyst: The merger of SpaceX and xAI has reduced the likelihood of Tesla being involved.

Analyst Ben Kallo from Baird stated in a report that the merger between SpaceX and xAI reduces the likelihood of Musk incorporating Tesla into a conglomerate. He wrote, "Given the significant integration work ahead for xAI and SpaceX, we believe that even if it were to happen in the future, the inclusion of Tesla is unlikely to be a short-term event." The market had previously speculated whether Musk would attempt to integrate Tesla with other businesses in his commercial portfolio. Last week, media reports suggested that SpaceX had considered merging with Tesla instead of xAI. Kallo said, "Regardless of whether this possibility exists, the expansion of Musk's companies as a whole will ultimately benefit Tesla, whether it continues to exist as an independent company or becomes part of a merged entity."