Recent rumors point to a potential Tesla–SpaceX merger led by Elon Musk as early as 2027. The chatter has emerged as Musk positions a second trillion-dollar firm for an IPO. Though the merger is still unconfirmed, the companies aren’t dismissing the speculation either.
Elon Musk’s Tesla and SpaceX might merge by next year, rumor suggests
As Elon Musk readies a second trillion-dollar company for the public market, rumors suggest that his ultimate aim is to unite the companies. The move would place him at the helm of two of the 10 largest U.S. enterprises.
In just over two weeks, SpaceX is expected to begin trading on the NASDAQ. The company reached a $1.25 trillion private valuation this year after merging with Musk’s xAI. Tesla is now valued at roughly $1.6 trillion.
The two companies already share extensive resources. According to people familiar with the matter, who requested anonymity due to the topic’s sensitivity, Musk has discussed merging the firms with colleagues.
A Tesla employee told CNBC that staff at the EV maker have long anticipated a deal like this and that it is discussed openly within the company. Another person close to the company said that common power and computing challenges have led to frequent collaboration.
Though a government contractor launching rockets shares little surface commonality with an EV maker, both companies are shifting heavily toward AI. The pivot demands the same talent and computing infrastructure. SpaceX directed more than 75% of its $10.1 billion Q1 capital expenditures to AI. Tesla, in its most recent earnings report, said capex will roughly triple this year, surpassing $25 billion.
According to Tomasz Tunguz, a former engineer and current Theory Ventures VC, the prospect of a merger is generating buzz among Silicon Valley tech circles. However, he admitted that a transaction of that magnitude would be complex.
“I think it’s been proven by Elon himself,” Longtime SpaceX investor and Nebex CEO Tejpaul Bhatia said. Additionally, he noted that parallel entrepreneurship seems to work for the tech mogul.
SpaceX and Tesla did not respond to requests for comment.
