TSL is going to merge with xAI? Bridgewater Capital founder: It feels inevitable.

The potential merger between Tesla and Elon Musk's artificial intelligence startup xAI is gradually evolving from speculation in the market to a serious discussion. Anthony Scaramucci, founder of SkyBridge Capital, recently stated on social media platform X that as Musk accelerates the integration of AI into his business empire, "the merger between TSL and xAI feels inevitable," further raising market expectations for this deal.

The shareholder proposal first ties TSL with xAI

Scaramucci's remarks came after TSL shareholders submitted a formal proposal.

Investor Stephen Hawk from Florida has suggested that the TSL board invest in xAI and include the proposal in the agenda for the annual shareholder meeting on November 6, to be voted on alongside Musk's controversial compensation plan.

Hawk stated that the inspiration came from Musk's previous posts on social media hinting at a collaboration between the two parties. He believes that "formalizing this partnership is crucial for ensuring the mutual interests of both parties."

Musk's new compensation plan hides a "merger clause"

More attention-grabbing than the shareholder proposals is Musk's long-term compensation plan valued at up to $1 trillion.

Morgan Stanley analysts pointed out that the plan includes a key provision: "The market capitalization and adjusted EBITDA milestone targets may be adjusted due to significant acquisitions."

The market generally interprets this as leaving room for the future integration of TSL and xAI, and it may become part of Musk's long-term strategy. This plan also addresses investors' concerns about Musk being distracted by other businesses like xAI and SpaceX, while ensuring that he retains at least 25% of TSL shares to maintain control.

Synergy: The Combination of AI Technology and Hardware Ecosystem

Musk positions TSL as a "real-world artificial intelligence" company, with core applications including autonomous driving and the Optimus humanoid robot.

Currently, the Grok large language model developed by xAI has been integrated into Optimus and some TSL models, and Tesla industrial batteries have been purchased to power its data centers.

Analysts believe that if the two companies merge, it will create a closed loop between the AI software and hardware ecosystem, releasing significant synergetic value.

Market Outlook: Market Capitalization May Hit $8.5 Trillion

Gene Munster, co-founder of Deepwater Asset Management, has predicted that the combination of TSL and xAI could drive TSL's market value to reach $8.5 trillion.

Against the backdrop of xAI's valuation exceeding $100 billion and seeking up to $200 billion, how to allow TSL shareholders to share in the dividends brought by the AI breakthrough has become a core issue that Musk must address.

Conclusion

The merger between TSL and xAI is no longer just market speculation, from shareholder proposals to compensation terms, and then to interpretations by Wall Street analysts. With the shareholder meeting approaching in November, this deal, which could reshape the global AI and electric vehicle industry landscape, may reach a critical moment.