Emma Wall, chief investment strategist at Hargreaves Lansdown, said: “The biggest company news today is happening away from listed equity markets.
“Elon Musk has announced plans to combine SpaceX and xAI to create a $1.25 trillion company, merging the entities responsible for his artificial intelligence engine, social media, space exploration, energy generation, communications, and no doubt more.
“This vertical integration makes sense; Musk announced during last week’s Tesla results that he would be pivoting the business away from electric vehicles to automation and artificial intelligence, and this will be true of his space travel ambitions too, meaning there are technological synergies to be made across all his businesses.
“What will be key is the market’s view of the valuation.
“Musk has previously shared intentions to IPO SpaceX, rumoured to be in June due to the auspicious alignment of the planets Jupiter, Venus and Mercury that month.
“While Musk has a proven track record of delivery, he is a divisive figure and will be asking the market to value a company based on a multi-decade vision, where most CEOs operate a three-to-five-year business cycle.”
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