Why Elon Might Merge Tesla And SpaceX

Tesla's cash flow improved on execution, but robotaxi progress and merger upside remain unproven while YouTube is overtaking Netflix.

• Tesla free cash flow surprises: Tesla posted $1.5 billion in free cash flow and a 2-point gross margin improvement in auto, even as deliveries and revenue declined year-over-year, per Karim Bousta.
• Merger logic for Tesla: Bousta says a Tesla-SpaceX merger could give Tesla access to SpaceX's compute, chips, and Starlink's cash-generating ability, but won't solve robotaxi scaling or deployment challenges.

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