Musk eyes $3.5 trillion Tesla-SpaceX merger
Published: 23 October 2026, 12:16:12
Collected Photo
Elon Musk is considering a potential merger between electric vehicle maker Tesla and space company SpaceX, a move that could create a technology giant with a combined valuation of around $3.5 trillion.
Musk has backed the idea of combining the two companies, citing potential benefits from closer cooperation in artificial intelligence (AI), robotics, advanced manufacturing, satellite communications and computing infrastructure.
A merger would bring Tesla’s electric vehicles, energy storage, autonomous driving and robotics businesses together with SpaceX’s rocket launch operations, Starlink satellite broadband services and future space projects.
The proposed deal could allow Tesla shareholders to gain exposure to SpaceX’s rapidly expanding satellite internet and space businesses, while SpaceX investors could benefit from Tesla’s electric vehicle and energy operations.
However, the potential merger could face regulatory scrutiny and geopolitical challenges. SpaceX works with the US military, intelligence agencies and NASA, while Tesla maintains significant manufacturing and commercial operations in China.
The companies’ ambitious projects, including Starship, robotaxis, humanoid robots and AI data centres, could also complicate the integration because of their substantial costs and technical demands. No final merger agreement has been confirmed.
