SpaceX-Tesla merger could create a Frankenstein's monster Wall Street can't value

What happened: Business Insider reports that SpaceX and Tesla are officially considering a merger, which would combine Elon Musk's two companies into one entity with overlapping AI plans. Why it matters: The article says a combined company spanning space, AI, robots, and other businesses could face a conglomerate discount, as investors may struggle to value such a diverse set of operations. Key numbers: A widely cited 1995 paper found a conglomerate discount of 13% to 15% among diversified companies from 1986 to 1991. Coverage: 3 outlets in 24h

Business Insider reports that SpaceX and Tesla are officially considering a merger, which would combine Elon Musk's two companies into one entity with overlapping AI plans.

The article says a combined company spanning space, AI, robots, and other businesses could face a conglomerate discount, as investors may struggle to value such a diverse set of operations. Key numbers: A widely cited 1995 paper found a conglomerate discount of 13% to 15% among diversified companies from 1986 to 1991.