A SpaceX-Tesla merger would be valued at $3.4 trillion — and still not make a dime

Good morning. On Fortune’s radar today:

Markets: Mixed but low-drama.

A SpaceX-Tesla merger still wouldn’t make money.

Trump loses patience with the media, again.

“I apologize for not dying soon enough for you”: Baby boomers do not like being told they are getting in the way.

American misery is so bad the data must be wrong.

Wall Street worries the Fed is wildly off course in fighting inflation.

Delicious revenge at Applebee’s.

Stocks take a breather after S&P 500 hits a record high

S&P 500 futures were up 0.14% this morning. The index rose 0.22% on Friday to set a new record high at 7,580.06. The index is up 10.73% year-to-date.

In Europe, the Stoxx 600 was down 0.2% in early trading and the U.K.’s FTSE 100 sank 0.23% before lunch.

Asia: South Korea’s KOSPI rose 3.68%. Japan’s Nikkei 225 was up 0.91%. India’s Nifty 50 was down 0.66%. China’s CSI 300 was down 0.98%. 

Brent crude was $94 per barrel this morning.

Bitcoin fell to $72.7K.

A SpaceX-Tesla union would be a giant money-loser

A SpaceX-Tesla union would be the largest merger of all time, writes Fortune’s Shawn Tully, but it still wouldn’t make any money.

The two enterprises’ valuations are about equal, Tesla’s at $1.65 trillion and SpaceX’s anticipated IPO at $1.75 trillion. To clinch the deal, SpaceX would need to issue a batch of new shares equivalent to 94% of the current number, and that would nearly double the stock from 4.1 billion shares to 8 billion. The combined SpaceX-Tesla would emerge with a valuation of $3.4 trillion.

While the $3.4 trillion valuation is breathtakingly big, the profits generated by the combo wouldn’t even qualify as small. Based on recent results, they’d be negative. At today’s numbers, a pro-forma SpaceX-Tesla would show a GAAP yearly earnings of around minus $1 billion.

Boeing: How Kelly Ortberg is rebuilding Boeing from the inside out - Shawn Tully

EasyJet: Castlelake Says Any easyJet Offer Would Value Airline at Minimum $4.12 Billion - WSJ

Trump loses patience with the media’s lack of patience

President Trump lashed out at the media overnight for making negotiations with Iran “tougher” than they need to be. His comments came after he criticized CNN for characterizing his current peace proposals as not including Iran’s nuclear program. “Actually it states, very clearly, that Iran will not have a Nuclear Weapon. It then goes on, in very strong and lengthy detail, to discuss various other aspects of Nuclear. In fact, that’s what most of the agreement is about,” Trump said on Truth Social.

Stop the “chirping”: “Iran really wants to make a deal, and it will be a good one for the U.S.A. and those that are with us. But don’t the Dumocrats, and various seemingly unpatriotic Republicans, understand that it is MUCH tougher for me to properly do my job and negotiate, when political hacks keep negatively “chirping,” at levels never seen before, over........

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