{"id":10923,"date":"2026-07-07T02:08:39","date_gmt":"2026-07-07T02:08:39","guid":{"rendered":"https:\/\/www.fintechpulse8.com\/?p=10923"},"modified":"2026-07-07T02:08:39","modified_gmt":"2026-07-07T02:08:39","slug":"a-spacex-tesla-union-would-be-valued-at-3-4-trillion-and-still-not-make-a-dime","status":"publish","type":"post","link":"https:\/\/www.fintechpulse8.com\/?p=10923","title":{"rendered":"A SpaceX-Tesla union would be valued at $3.4 trillion \u2014 and still not make a dime"},"content":{"rendered":"

<\/p>\n

\n

ONE BIG THING<\/h3>\n

A SpaceX-Tesla union would be a giant money-loser<\/b><\/h2>\n

A SpaceX-Tesla union would be the largest merger of all time, <\/span>writes <\/span>Fortune<\/span><\/i>\u2019s Shawn Tully<\/span>, but it still wouldn\u2019t make any money.<\/span><\/p>\n

The two enterprises\u2019 valuations are about equal, Tesla\u2019s at $1.65 trillion and SpaceX\u2019s anticipated IPO at $1.75 trillion. To clinch the deal, SpaceX would need to issue a batch of new shares equivalent to 94% of the current number, and that would nearly double the stock from 4.1 billion shares to 8 billion. The combined SpaceX-Tesla would emerge with a valuation of $3.4 trillion.<\/span><\/p>\n

While the $3.4 trillion valuation is breathtakingly big, the profits generated by the combo wouldn\u2019t even qualify as small. Based on recent results, they\u2019d be negative. At today\u2019s numbers, a pro-forma SpaceX-Tesla would show a GAAP yearly earnings of around minus $1 billion.<\/span><\/p>\n

IRAN<\/h3>\n

Trump loses patience with the media\u2019s lack of patience<\/b><\/h2>\n

President Trump lashed out at the media overnight<\/b> for making negotiations with Iran \u201ctougher\u201d than they need to be. His comments came after he criticized CNN for characterizing his current peace proposals as not including Iran\u2019s nuclear program. \u201cActually it states, very clearly, that Iran will not have a Nuclear Weapon. It then goes on, in very strong and lengthy detail, to discuss various other aspects of Nuclear. In fact, that\u2019s what most of the agreement is about,\u201d <\/span>Trump said on Truth Social<\/span>.<\/span><\/p>\n

    \n
  • Stop the \u201cchirping\u201d:<\/b> \u201cIran really wants to make a deal, and it will be a good one for the U.S.A. and those that are with us. But don\u2019t the Dumocrats, and various seemingly unpatriotic Republicans, understand that it is MUCH tougher for me to properly do my job and negotiate, when political hacks keep negatively \u201cchirping,\u201d at levels never seen before, over and over again, that I should move faster, or move slower, or go to war, or not go to war, or whatever. Just sit back and relax, it will all work out well in the end – It always does!\u201d <\/span>The president posted that<\/span> at around 1 a.m. Eastern time.<\/span><\/li>\n<\/ul>\n

    The war goes on: <\/b>The U.S. continued what Centcom called “self-defense strikes” against Iran over the weekend, <\/span>the BBC<\/em> reports<\/span>. For its part, Iran shot down a U.S. drone over international water and claimed that it targeted a U.S. airbase. Kuwait also said it had activated its air defenses against drones and missiles.<\/span><\/p>\n

    Satellite imagery shows<\/b> Iran’s attacks have caused damage to 20 U.S. military sites in the Gulf region, <\/span>a BBC<\/em> analysis claims<\/span>. Aircraft, fuel storage, hangars and anti-ballistic missile batteries have all been struck, suggesting that Iran\u2019s military remains more capable than previously thought.<\/span><\/p>\n

    Meanwhile, the U.S. is having some success <\/b>at getting ships out of the Strait of Hormuz. About 70 vessels have been successfully escorted out, <\/span>according to the New York Times<\/em><\/span>.<\/span><\/em><\/p>\n

    Wall Street has little visibility on what happens next<\/b><\/h2>\n

    Analysts are split over where the conflict is going. The stock markets are largely ignoring the war. The price of oil has taken a step down over the last couple of weeks, to below $100 a barrel, which would imply that traders think the end is in sight. But the end keeps not happening:\u00a0<\/span><\/p>\n

      \n
    • \u201cOil prices have edged higher on the lack of any discernible progress toward an Iran-US agreement. As with reports of an imminent deal last week, the reaction is muted. A jaded cynicism has come over investors, and in the absence of a definite statement from Iran there is a tendency to downplay comments from the US administration.\u201d\u2014Paul Donovan at UBS.<\/span><\/li>\n
    • \u201cIt’s hard to imagine remaining in limbo for much longer given that if the Strait of Hormuz remains closed into mid-summer it will at some point likely lead to a non-linear tipping point of economic stress.\u201d \u2014Jim Reid et al at Deutsche Bank.<\/span><\/li>\n
    • \u201c’Go Global’ should outperform when Strait reopens \u2026 The Emerging Markets MSCI ETF (EEM) is up 25.4% ytd against 10.9% for the S&P 500. \u2026 Europe, Japan, and many EMs that are net petroleum importers should outperform when the Strait of Hormuz reopens, at least on a short-term basis.\u201d\u2014<\/span>Ed Yardeni and Toby Hearst at Yardeni Research<\/span>.<\/span><\/li>\n<\/ul>\n

      Brent crude prices via TradingEconomics:<\/p>\n

      \"\"<\/div>\n

      \u201cSOYLENT GREEN\u201d<\/h3>\n

      Hell hath no fury like a baby boomer scorned<\/b><\/h2>\n
      \n
      \"Photo:<\/div>
      Charlton Heston discovers what Soylent Green is really made of.<\/figcaption>

      MGM<\/p>\n<\/figure>\n

      Last week, <\/span>Fortune<\/span><\/i>\u2019s Nick Lichtenberg<\/span> wrote a column arguing that, economically, the baby boomers were like a pig being swallowed by a python\u2014a demographic bulge moving through the housing and labor markets, staying longer in big houses and senior jobs, leaving less space for younger families to buy homes or move up at work. As a group, they hold a disproportionate share of the houses, high?status jobs, and institutional power\u2014and it\u2019s suffocating the generations behind them.<\/span><\/p>\n

      The boomers were displeased\u2014and they let him know it, in a series of spicy emails.<\/span><\/p>\n

      \u201cDear Nick,\u201d one began. \u201cI apologize for not dying soon enough for you, so your generation can pick over my financial bones. Sincerely, a boomer who is in excellent health (sorry).\u201d Another wondered: \u201cAre you suggesting putting boomers on ice floes or turning them into Soylent Green?\u201d (A great movie if you haven\u2019t seen it, by the way. <\/span>Watch the trailer here<\/span>.)<\/span><\/p>\n

      Another reader, a 73-year-old who described herself as an \u201cold lady in Phoenix,\u201d threatened something much tamer. \u201cIf I was your mom, I would spank you!\u201d she said. <\/span>Read more here<\/span>.<\/span><\/p>\n

      MORE FROM FORTUNE<\/h3>\n

      Wall Street may have solved a nagging mystery in global oil markets as doomsday scenarios have yet to arrive<\/span> – Jason Ma<\/span><\/p>\n

      Billionaires already couldn\u2019t talk to their grandchildren. Now they\u2019re on opposite sides of the AI divide<\/span> – Nick Lichtenberg<\/span><\/p>\n

      I worked with Steve Jobs at Apple, where every OS update killed startups. AI founders are about to face the same thing<\/span> – Matt Rogers<\/span><\/p>\n

      \u2018Don\u2019t be yourself\u2019 in the workplace, actually, Columbia professor says. Here\u2019s why authenticity is \u2018overrated\u2019<\/span> – Sasha Rogelberg<\/span><\/p>\n

      Taylor Swift just exposed a blind spot in AI law \u2014 and it\u2019s bigger than copyright<\/span> – Daryl Lim<\/span><\/p>\n

      Chinese factory activity flattens as analysts wonder about true damage from Iran War<\/span> – AP<\/span><\/p>\n

      CHART OF THE DAY<\/h3>\n

      The Fed could be 100 basis points off track, PIMCO says<\/b><\/h2>\n

      More analysts have gone on record saying that the Fed seems to be ignoring the Taylor Rule, one of the most basic economic principles for fighting inflation: <\/span>The Taylor rule states<\/span> that when inflation is higher than the target rate (which is 2%), the U.S. Federal Reserve interest rate should be higher still, and moving upward faster than inflation.\u00a0<\/span><\/p>\n

      In fact, the Fed\u2019s \u201cpolicy rate is 75 to 100 basis points (bps) too accommodative,\u201d meaning too low, according to PIMCO\u2019s Tiffany Wilding. There are various Taylor rule formulations, and on all of them the Fed appears to be holding interest rates too low to prevent inflation (CPI is 3.8%, notably higher than the Fed’s current interest rate, at 3.5%), she says:<\/span><\/p>\n

      <\/p>\n

      \"\"<\/div>\n

      <\/span><\/p>\n

      There\u2019s \u201ca growing risk that policy will need to pivot \u2026 in 2027,\u201d <\/span>she says<\/span>. \u201cRecent Fed communications suggest policymakers are increasingly sensitive to the risk that inflation remains above target.\u201d<\/span><\/p>\n

      Mark Cabana and his team at Bank of America <\/span>said something similar last month<\/span> and they were joined by Aditya Bhave and other colleagues at BofA this weekend. \u201cTaylor Rule models suggest policy is about 100bp too easy, based on core PCE inflation,\u201d they told clients in a note seen by <\/span>Fortune<\/span><\/i>.<\/span><\/p>\n

      Deutsche Bank\u2019s Matt Luzzetti calculated the Fed ought to be setting rates at up to 4.8%. \u201cThat is more than 100bps above the current level, given core PCE inflation of around 3.2%, an unemployment rate of 4.3%,\u201d the bank said in an email.\u00a0<\/span><\/p>\n

      NUMBER OF THE DAY<\/h3>\n

      49.8<\/h2>\n

      The current rating of <\/span>U.S. consumer sentiment<\/span>\u2014the lowest ever recorded\u2014according to the University of Michigan survey. The number is so low that many analysts no longer regard it as reliable. Piper Sandler\u2019s Nancy Lazar noted <\/span>in a video last week<\/span> that the survey methodology changed recently, leading to a step down in the rating, and that only about 1,000 people respond to the survey, making it \u201cvery, very misleading.\u201d\u00a0<\/span><\/p>\n

      Ben Carlson of Ritholtz Wealth Management agrees. \u201cSeriously people?!\u201d <\/span>he says<\/span>. \u201cConsumer sentiment readings go all the way back to the early-1950s,\u201d he says, and it is thus implausible that Americans are more miserable today than during the Covid pandemic or the Great Financial Crisis.\u00a0<\/span><\/p>\n

      THE FRONT PAGES TODAY<\/h3>\n

      Jes Staley to appear before Congress over ties to Jeffrey Epstein<\/span> – FT<\/span><\/p>\n

      Nvidia jumps into PCs with new Arm-based chip debuting in laptops from Microsoft, Dell, HP<\/span> – CNBC<\/span><\/p>\n

      Trump health readout leaves key blanks unfilled<\/span> – Axios<\/span><\/p>\n

      No raise, no promotion: 1 in 4 white-collar workers are stalling out<\/span> – WSJ<\/span><\/p>\n

      SpaceX\u2019s IPO forces Wall Street to reorganize around it<\/span> – Bloomberg<\/span><\/p>\n

      The U.S. is quietly guiding ships through the Strait of Hormuz<\/span> – NYT<\/span><\/p>\n

      ONE MORE THING<\/h3>\n

      At Applebee\u2019s, revenge is served cold<\/b><\/h2>\n
      \n
      \"Former<\/div>
      Former IHOP CEO Julia Stewart<\/figcaption>

      Bloomberg \/ Contributor \/ Getty Images<\/p>\n<\/figure>\n

      Back in 1998, Julia Stewart was president of Applebee\u2019s. The restaurant chain was struggling and needed to be turned around, writes <\/span>Fortune<\/span><\/i>\u2019s Emma Burleigh<\/span>. So Applebee\u2019s chief exec presented a plan to Stewart: Get the struggling company back on track. \u201cThe then-chair and CEO said, \u2018When you and the team turned this company around, we\u2019ll make you CEO,\u2019\u201d she said.<\/span><\/p>\n

      Stewart grew sales 14% annually and the stock doubled. After three years, Stewart asked the CEO to make good on his promise. He replied, \u201cNo, not ever.\u201d\u00a0<\/span><\/p>\n

      So Stewart quit \u2026 and became CEO at IHOP.<\/span><\/p>\n

      Time passed. In 2007, she put in an offer to acquire Applebee\u2019s. The deal went through. \u201cI called the chair and CEO of Applebee\u2019s, and I said, \u2018Just wanted to say hi.\u2019 And he said, \u2018I was expecting this call,\u2019\u201d Stewart said. \u201cAnd I said, \u2018As you know, this morning, we announced that we have purchased, for $2.3 billion, the company, and we don\u2019t need two of us, so I\u2019m gonna have to let you go.\u2019\u201d<\/span><\/p>\n<\/div>\n

      #SpaceXTesla #union #valued #trillion #dime<\/p>\n","protected":false},"excerpt":{"rendered":"

      ONE BIG THING A SpaceX-Tesla union would be a giant money-loser A SpaceX-Tesla union would be the largest merger of all time, writes Fortune\u2019s Shawn Tully, but it still wouldn\u2019t… <\/p>\n","protected":false},"author":1,"featured_media":10924,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[9170,816,743,12574,445,166,1222,1843,7368,2723,771,6860,4132],"class_list":["post-10923","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-news","tag-dime","tag-economics","tag-elon-musk","tag-fortune-500-digest-weekday","tag-iran","tag-markets","tag-news","tag-spacex","tag-spacextesla","tag-tesla","tag-trillion","tag-union","tag-valued"],"_links":{"self":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/10923","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10923"}],"version-history":[{"count":0,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/10923\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/media\/10924"}],"wp:attachment":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10923"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10923"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10923"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}