Elon Musk has revealed that SpaceX and Tesla are exploring a historic mega-merger that could create a corporate giant worth over $3 trillion.
Speaking on a SpaceX earnings call, Musk called the tie-up a good idea, citing shared artificial intelligence and technology synergies between the two firms. Both companies have formed special committees to review a potential deal, which would ultimately require approval from Tesla shareholders. Following the news, shares for both companies rose in after-hours trading.
A merger would bring together Tesla’s electric vehicle, energy storage and robotics businesses with SpaceX’s rocket launch and satellite internet operations. Artificial intelligence (AI) is a common focus for both companies, driving investments in areas such as data centres, autonomous vehicles and advanced software.
Following the announcement, SpaceX shares rose 4.5% in after-hours trading after the company reported its quarterly results, while Tesla shares gained 1%.
The potential deal would involve two of the world’s most valuable companies, with SpaceX, formally known as Space Exploration Technologies Corp., valued at approximately $2 trillion and Tesla at nearly $1.5 trillion. A merger would create a corporate entity of unprecedented scale, spanning space exploration, mobility, energy and AI.
The two companies already share several business and investor connections, along with some personnel. SpaceX has purchased more than $100 million worth of Tesla Cybertrucks, while xAI, Musk’s artificial intelligence startup, is a major customer for Tesla’s utility-scale battery systems.
Speculation about a possible merger has intensified since SpaceX completed its initial public offering earlier this year, benefiting from strong investor demand and gaining a valuable currency for potential acquisitions. A news source reported in January that SpaceX had considered merging with Tesla before deciding to acquire xAI.
Musk cautioned that a merger isn’t certain and would require shareholder support. He said Tesla would need approval from 50% of all shareholders, rather than simply a majority of those voting.
“Some people out there assume that a SpaceX and Tesla merger is a certainty,” Musk said. “I think that would be overstating it.”
