News & Updates
The latest news and updates from companies in the WLTH portfolio.
Tesla-SpaceX Merger Probability Jumps to 90% Following Musk's Earnings Call Remarks
* Gene Munster of Deepwater Asset Management increased his merger probability forecast from 80% to 90% following Tesla's second-quarter earnings discussion * Elon Musk confirmed expanding integration between the companies while stating merger discussions require "appropriate process" * Kalshi prediction market participants assign 41% probability to merger completion by March 2027 * More than $402,000 in wagers placed on Kalshi's Tesla-SpaceX merger contract * Tesla stock declined approximately 4% after missing Q2 earnings expectations with negative free cash flow During Tesla's second-quarter earnings discussion on Wednesday, Elon Musk faced a direct inquiry regarding a possible merger with SpaceX. While confirming increased integration between both entities, Musk indicated that an earnings call wasn't the suitable forum for such discussions. "It's got to be done with the appropriate process," Musk said. Deepwater Analyst Increases Probability Forecast Gene Munster from Deepwater Asset Management expressed surprise that the merger inquiry received any consideration during the call, interpreting it as an encouraging development. "Going into the call, I thought there was an 80% chance the two companies come together in the next few years. I'm raising that to 90%," Munster posted on X. Munster emphasized that Musk personally pointed out the expanding convergence between both organizations, especially regarding Terafab, a semiconductor manufacturing initiative supported by both companies. Commercial partnerships already exist between the organizations. SpaceX utilizes Tesla's energy storage technology for its artificial intelligence computing facilities. Tesla has incorporated SpaceX's Grok AI technology into its vehicle lineup and completed direct vehicle sales to SpaceX. Space Exploration Technologies Corp., SPCX Musk has previously discussed his companies moving toward "convergence" in a social media post on X. Betting Markets Show 41% Merger Probability Kalshi, a federally regulated prediction platform, displays over $402,000 in total wagers on its "When will Tesla and SpaceX merge?" market. Market participants currently assign a 41% likelihood to a merger completing before March 1, 2027. The probability increases marginally to 45% for completion before May 1, 2027. Musk has demonstrated a history of consolidating his business ventures. He integrated xAI into SpaceX prior to its June public offering. Back in 2016, Tesla completed a Solar City acquisition, incorporating it into Tesla's energy segment. That transaction triggered a significant shareholder legal challenge, which concluded favorably for Musk in 2022. SpaceX completed its public market debut in June, temporarily achieving a $2.6 trillion market capitalization. Subsequently, the company experienced market value reductions approaching $1 trillion, accompanied by concerns regarding valuation metrics and anticipated insider selling activity. Tesla stock experienced a nearly 4% decline in extended trading Wednesday. The electric vehicle manufacturer fell short of second-quarter earnings projections and posted negative free cash flow figures. SpaceX shares similarly declined more than 6% during the trading session. Neither organization has issued a formal merger announcement or proposal.
Elon Musk's Grok 4.5 AI Model Goes Public Today as SpaceX (SPCX) Stock Struggles
* Elon Musk confirmed Grok 4.5 becomes publicly available Wednesday, July 9 * The AI model is positioned as "Opus-class," with Musk touting superior speed, token efficiency, and cost advantages over Anthropic's Claude * The release leverages xAI's groundbreaking V9 foundation model featuring 1.5 trillion parameters * SpaceX shares dropped almost 7% during their inaugural trading day as a Nasdaq 100 component, showing marginal pre-market gains Wednesday * OpenAI plans to unveil GPT-5.6 Thursday after postponing the launch due to national security considerations Elon Musk revealed Tuesday night that the public rollout of Grok 4.5 would occur Wednesday, July 9. This represents the newest iteration of SpaceXAI's primary artificial intelligence offering, the company previously operating under the xAI brand. Musk took to social platforms to characterize the model as "Opus-class," drawing a direct comparison with Anthropic's Claude by asserting that Grok 4.5 delivers "faster, more token-efficient, and lower cost" performance. The development of Grok 4.5 utilized xAI's cutting-edge V9 foundation architecture, boasting 1.5 trillion parameters. Musk disclosed earlier this July that the system had begun closed beta evaluation at SpaceX and Tesla facilities. Grok 4.3, the prior release, debuted in April. Musk had been signaling an enhanced version was in development since that time. SpaceX's Artificial Intelligence Strategy xAI merged with SpaceX in February 2026, subsequently rebranding as SpaceXAI. The Grok product family now represents a central element of SpaceX's artificial intelligence market expansion, complementing its aerospace and satellite operations. The Grok 4.5 debut arrives amid intensifying competition within the generative AI landscape. OpenAI, Anthropic, and Google have each introduced progressively sophisticated models throughout the previous twelve months. OpenAI has scheduled GPT-5.6's public introduction for Thursday. The company postponed that launch last month following government concerns regarding potential exploitation by malicious entities. Market observers are tracking how rapidly Grok 4.5 can capture consumer and enterprise adoption. Robust market acceptance would bolster SpaceX's artificial intelligence revenue objectives. SPCX Shares Face Selling Pressure Tuesday represented SpaceX stock's debut trading session following its addition to the Nasdaq 100 index. Shares declined nearly 7% during the session, caught in a wider technology sector downturn. Space Exploration Technologies Corp., SPCX Multiple Wall Street research firms launched coverage with Buy recommendations, yet this failed to provide support for the stock. Market participants maintained a cautious outlook. SpaceX equity showed strength immediately following its initial public offering, though those early advances dissipated rapidly. As of Tuesday's trading close, shares have declined approximately 7% from their June 12 market debut. Wednesday's pre-market activity showed the stock advancing 0.12%, representing a slight rebound before the Grok 4.5 availability. SpaceX maintains a Strong Buy consensus among analysts tracked by TipRanks. The consensus price target sits at $212.08, suggesting potential upside of roughly 46% from present valuation levels.
