Here are 5 ways Tesla CEO Elon Musk can combine his companies into one Giga conglomerate X: the idea which he liked. One of those ways is to take Tesla private. Would you like that idea?
Tesla CEO Elon Musk floats the idea of starting one Giga parent company named X to hold Tesla, SpaceX, The Boring Company and Neuralink.
Dave Lee, a Tesla Investor and YouTuber, suggested Elon Musk create a holding company named X that would unite his brainchildren under the banner of a single goal: Mission X. Musk seems to like this idea.
"I propose Elon Musk to form a holding company called X. X's mission is to ensure human survival and progress. X becomes parent company of Tesla, SpaceX, Neuralink and Boring Company. Elon, what do you think?" asked Lee on Twitter.
"Good idea," replied Musk.
Lee's suggestion is a nod to Musk’s ownership of “X.com” from his PayPal days.
Good idea— Elon Musk (@elonmusk) December 23, 2020
Sean O'Kane discussed the proposal in The Verge and talks about 5 easy ways for Elon Musk to combine his companies into a supercongromerate.
One of the ways O'Kane suggests for Elon Musk to create the Giga conglomerate X is to repeat Alphabet.
"The most straightforward way for Musk to create X could be to roughly follow that Alphabet model. The big difference is SpaceX, Neuralink, and The Boring Company are all separate entities that exist outside of Tesla, the only publicly-traded business of the bunch. Let’s start with Tesla, since that’s where most of the action will have to take place," O'Kane writes.
"As you can see, Musk has a few options if he really wants to create the kind of world-beating conglomerate that only shows up in the movies. It may be a long shot, but that’s sort of his whole thing. No wonder he thinks it’s a good idea," concludes O'Kane.
What really doesn’t gel about going the Alphabet route is Musk... kind of despises that Tesla is a public company. Here’s what Musk wrote when he tried to take Tesla private back in 2018. Do you like the approach to take Tesla private?
Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded TorqueNews.com in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebok, Linkedin and Youtube.