US Stock Market Move | Acquisition of Tesla, Inc. Questioned as "Poverty Alleviation"; SpaceX (SPCX.US) Once Fell Over 4%

On Wednesday, SpaceX (SPCX.US) opened low and traded lower, falling more than 4% at the intraday low. As of press time, it was down more than 3% at $143.7. In addition, Tesla, Inc. (TSLA.US) fell more than 2%. On the news front, as the potential acquisition of Tesla, Inc. by SpaceX draws heavy attention, experts noted that the deal could mean Tesla, Inc. is already on the edge of a cliff. Scott Galloway, a professor at New York University's Stern School of Business, warned that a merger between SpaceX and Tesla, Inc. would rescue Tesla, Inc. at the expense of SpaceX shareholders' interests. He argued that this is a merger built on a false premise and a tactic Musk commonly usesmerging a struggling business into a stronger company, such as folding X into xAI and then merging xAI into SpaceX. But such a tactic is effectively an admission that Tesla, Inc. faces major difficulties. He also likened the deal to having another family adopt a poor child, and to trading a Buick for a Gulfstream jet, saying the only ultimate winner would be Tesla, Inc.'s shareholders. However, he also acknowledged that combining Tesla, Inc.'s manufacturing capabilities with SpaceX's computing infrastructure has potential benefits, but Tesla, Inc. investors would gain disproportionately from Starlink and the artificial intelligence sector.