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Tesla profitability worsens, merger with SpaceX more likely
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Fusion42 · 29 July 2026 · Fusion42 review
Tesla's Q2 results show worsening profitability despite higher revenue, leading to a 12% stock decline and delays in the mass production of its Cybercab, Semi, and Megapack 3. Amid these challenges and rising competition, CEO Elon Musk has publicly raised the possibility of a merger with SpaceX, citing increasing overlaps in their business areas.
This Wire brief sits within Fusion42's coverage of Electric Vehicles.
◆ ◆ The Wire takeaway
Tesla's car business can no longer carry its valuation alone. A merger with SpaceX creates a new kind of rival that combines industrial hardware with a unified AI stack, which you may now have to compete against.
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1 source · 29 Jul 2026
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