Seven Tenths of a Rocket

Dirk Hanlon: Barclays sketches the deal at 0.7 SpaceX shares per Tesla share. Gus: I own one Tesla share, I'm getting a rocket! Dot: Father, seven tenths of a SpaceX share, and nothing's announced; the Terafab chip plant they are building costs $55 billion to start, $119 billion in all (Tesla is worth about $1.45 trillion, SpaceX $2.06 trillion). Gus: seven tenths of a rocket is still a rocket.

Barclays' sketch of a Tesla–SpaceX deal gives Tesla holders about 0.7 SpaceX shares per Tesla share, joining a company worth about $1.45 trillion to one worth $2.06 trillion, roughly $3.5 trillion combined; the analyst's reason is money, since the Terafab chip project the two are building carries an initial $55 billion and an estimated $119 billion in all, and one board would approve such spending instead of two; nothing has been announced.

Starring

Dirk HanlonGus PeltDot PeltLorraine Pelt