Elon Musk Evaluates Potential Tesla-SpaceX Merger

Elon Musk has expressed interest in merging Tesla and SpaceX, acknowledging it is under active consideration.

During a call with financial analysts discussing SpaceX’s quarterly results, Musk stated he believes combining the companies would yield significant strategic benefits.

While emphasizing that no formal agreement exists and shareholder approval would be required, Musk noted that special committees at both firms are evaluating the potential transaction.

“There’s no certainty this will happen, but we’re actively considering it because the synergies are compelling,” Musk added.

A merger would create a combined entity valued at approximately $3.5 trillion, ranking among the largest in corporate history.

SpaceX shares rose 8% in after-hours trading following the announcement, while Tesla stock increased 2% ahead of its own earnings report.

The company, which develops rockets and Starlink satellites, has recently expanded into cloud computing services for clients including Anthropic and Google. This division generated $7.5 billion in revenue last quarter, with Starlink contributing an additional $5.2 billion, though SpaceX reported a $1.1 billion loss for the year.

Musk, who has increasingly integrated his ventures under broader umbrellas, previously oversaw SpaceX’s acquisitions of xAI and X (formerly Twitter) before their public launches. The recent establishment of Terafab, a joint chip manufacturing initiative between Tesla and SpaceX, reflects his vision for coordinated operations in AI and semiconductor development.

Musk concluded that a merger would streamline progress in chip design, artificial intelligence, and related technologies, building on existing collaborative projects.

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