The Musk Universe Might Be Converging

Tesla Inc. (TSLA) got a nice bump in after-hours trading Thursday, climbing 3.11% to $429.51, and the reason is pretty wild: SpaceX might be looking to merge with the electric vehicle giant.

According to Bloomberg, Elon Musk's space exploration company is mulling over a potential tie-up with both Tesla and xAI. Yes, all three companies are Musk-owned, which makes this less of a merger and more of a corporate family reunion. People familiar with the discussions say some investors in these companies have actually been pushing for this kind of arrangement.

The timing here is interesting. Reports about a potential SpaceX-xAI deal surfaced just hours earlier, and they're tied to SpaceX's planned IPO later this year. According to Reuters, Musk seems keen on going public to raise capital for building out orbital data centers, which sounds exactly like the kind of ambitious, futuristic project you'd expect from him.

SpaceX is reportedly targeting a June IPO with a valuation around $1.5 trillion. That's not a typo.

What the Charts Say

Beyond the merger buzz, Tesla is sitting in an interesting technical position. The stock is trading 2.3% below its 20-day simple moving average and 1.3% below its 100-day SMA, suggesting some near-term weakness. But zoom out a bit, and the picture looks better: shares are up 7.06% over the past 12 months and trading closer to 52-week highs than lows.

The RSI sits at 43.93, which is neutral territory, while the MACD is below its signal line. Key resistance level to watch is $499, with support at $424.50.