Investor reduces Tesla, SpaceX stakes amid merger speculation

Photo: SpaceX / Pexels A leading investor known for its long-term support of Elon Musk is reportedly reducing its stakes in Tesla and SpaceX, according to CNBC. This move comes amid significant market volatility following a broader selloff after the U.S. midterm elections, which saw Tesla and SpaceX shares decline by 11% and 9% respectively. These developments have raised questions about investor confidence in Musk’s ventures, especially as both companies are exploring a potential merger. The boards of Tesla and SpaceX have initiated independent committees to evaluate a merger, though no formal terms have been disclosed. Key Takeaways Market behavior suggests a decrease in confidence regarding a potential Tesla and SpaceX merger, with recent selloff activity impacting market valuations. The reduction in stake by a significant investor appears consistent with market skepticism about the merger prospects, reflected in declining odds for an official announcement by year-end. Current pricing indicates only a 9.5% probability of a merger announcement by December 31, with odds having declined from 20% a week ago. What to Watch Watch for any formal communications from Tesla or SpaceX rega...