The staged merger approach for SpaceX and xAI—and soon Tesla—is truly smart. Elon's silence on denying the Tesla speculation implies it's underway. Combining Tesla, SpaceX, and xAI all at once would be overly complex, surely drawing advisor warnings. But tackling SpaceX and xAI first lays groundwork, making the next step easier. The real genius is the dual track: preparing both merger and IPO simultaneously to create competitive pressure. Tesla shareholders face a tough choice: reject the deal and risk massive $Tesla Motors(TSLA)$ outflow to SpaceX/xAI, or approve it despite dilution to prevent exodus. This maximises shareholder buy-in. Brilliant.
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