Elon Musk is taking SpaceX public on the Nasdaq in just over two weeks and the merger talk is already starting.
According to a CNBC report, people familiar with the matter say Musk has already floated the idea of combining SpaceX and Tesla with colleagues.
Inside Tesla, employees are apparently not even being quiet about it, with many expecting some kind of deal to happen eventually.
On the surface, rockets and electric cars don’t have much in common. But both companies have quietly become AI businesses at their core, and that’s where the merger logic starts to make sense. Building serious AI infrastructure requires enormous computing power and specialized talent, and both SpaceX and Tesla are already fishing from the same pond. SpaceX merged with Musk’s AI startup xAI earlier this year, pushing its private market valuation to $1.25 trillion. Tesla sits at around $1.6 trillion. A combined entity would be one of the most valuable companies on the planet.
The two businesses are already deeply intertwined. They share engineers, board members and financial ties. SpaceX recently dropped $697 million on Tesla Megapack batteries to power its AI data centres and another $131 million on Cybertrucks. At this point they’re less two separate companies and more two divisions of the same operation.
If Musk decides to pull the trigger, there’s not much stopping him inside SpaceX. He controls 85% of the voting power. A merger would let him consolidate everything under one roof and give him the capital firepower to go head to head with the other tech giants in the AI race.
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