Sargasso Urges Tesla and SpaceX to Consider an All-Stock Combination

Sargasso submits a merger proposal

Sargasso Capital Management announced on November 10 that its founder, Patrick Feeley, had published “Project Kepler: The Case for Combining Tesla & SpaceX,” a report advising the two companies to combine. The announcement said Tesla and SpaceX have formed special committees to study a combination, and the report was written for those committees as material for their independent reviews.

The proposal is not an agreement to merge. Sargasso disclosed that it and its affiliates held small positions in Tesla and SpaceX as of November 9 and could change them at any time.

The report proposes Tesla as the surviving company

Feeley’s report proposes an all-stock combination at market prices with no premium, with Tesla surviving and a separate vote required for Tesla shareholders outside the transaction. The earlier announcement’s description of the proposal also identifies Tesla as the surviving company.

Sargasso said the report examines how Tesla and SpaceX already work together on chips, energy storage and connectivity. It argues that one owner could allocate capital across those shared programs faster than two separate companies. This is the report’s analytical case for consolidation, not a finding that the companies have agreed to the transaction.

SpaceX’s stated orbital-compute goal underpins the case

The report links its merger argument to SpaceX’s goal of launching 100 gigawatts of AI compute into orbit each year. Sargasso estimates that this would require roughly one million metric tonnes annually, about 135 times SpaceX’s lifetime total.

That annual figure is an estimate derived from the stated goal rather than a completed launch cadence. The reviewed announcement does not provide the underlying calculation, timing for reaching the goal or independent verification of the comparison.

The transaction remains under committee review

The core development is Sargasso’s formal submission of a combination proposal to the special committees formed by Tesla and SpaceX. No completed merger, definitive agreement or agreed transaction terms were reported in the supplied material.

The next verifiable milestone would be any disclosure by the companies or their committees about their review, a transaction agreement, shareholder votes or a decision not to proceed. The supplied reporting establishes the existence of the committees but does not announce a meeting date, filing deadline or decision schedule.