Musk hints at Tesla-SpaceX merger, special committees established
Elon Musk has suggested a potential merger between Tesla and SpaceX, indicating that the two firms have established special committees to evaluate the proposal. During the earnings call webcast on Wednesday, the chief executive officer of Tesla and SpaceX stated that shareholder support would be essential for any transaction to move forward. “I don’t think we should assume that a merger is a certainty. Do I think it would be a good idea? Yes. But at the end of the day, shareholders have to be supportive of this,” Musk said.
Musk stated he would refrain from participating in the discussions due to a conflict of interest. He also emphasised that the committees had not come to a consensus and may not achieve one. He highlighted the prospective advantages of enhanced collaboration between the two firms in domains including artificial intelligence, chip design, robotics, orbital launches, and connectivity. Tesla is valued at approximately $1.5 trillion, whereas SpaceX holds a valuation of $2 trillion.
Musk has a history of consolidating businesses under his management. In February 2026, SpaceX completed the acquisition of the artificial intelligence company xAI, a transaction that integrated the Grok chatbot and the social media platform X into a single corporate entity. In March of the previous year, xAI completed an acquisition of X through an all-stock transaction. SpaceX, known for its rocket manufacturing and the operation of the Starlink satellite internet service, has further diversified its offerings by supplying computing capacity to technology firms such as Anthropic and Google.
SpaceX’s most recent quarterly results indicate that its Super Intelligence division achieved $7.56 billion in revenue during the third quarter, whereas its Connectivity segment, encompassing Starlink, recorded $5.25 billion. In the wake of Musk’s remarks, SpaceX experienced an increase of more than 8 percent in after-hours trading, whereas Tesla saw a rise of approximately 1.7 percent.
