According to sources cited by CNBC on May 26, Elon Musk has discussed with close colleagues the possibility of merging SpaceX and Tesla. Numerous Tesla employees also confirm this has long been an open secret within the company. The timing of this news is particularly sensitive: SpaceX is set to kick off its IPO roadshow next week, aiming to list on NASDAQ around June 12 under the ticker symbol SPCX. It plans to raise up to $75 billion, which would make it the largest IPO in history, surpassing Saudi Aramco. Currently, SpaceX is valued at roughly $1.25 trillion in the private market following its merger with xAI in February, while Tesla’s market cap stands at about $1.6 trillion. In its IPO prospectus, SpaceX disclosed that between 2024 and 2025 it purchased $697 million worth of Megapack energy storage systems and $131 million worth of Cybertrucks from Tesla. Both companies also share some board members and engineering staff, and they’re jointly developing the Terafab semiconductor plant in Texas.
Analysts hold mixed views regarding a potential merger. Ross Gerber, CEO of investment firm Gerber Kawasaki, argues that such a merger would simplify investors’ choices by allowing them to place a single bet on Musk’s vision, while also giving both firms more room to secure AI-related funding. Conversely, other analysts warn that unfavorable deal terms could dilute Tesla shareholders’ stakes. Integrating two massive enterprises simultaneously ramping up AI-related capital spending — SpaceX allocated over $10.1 billion to capital expenditures in Q1, with more than three-quarters earmarked for AI initiatives; Tesla anticipates spending over $25 billion this year — would prove extremely challenging. Legally speaking, the merger is unlikely to attract antitrust scrutiny, yet aligning the interests of both companies’ shareholders and determining appropriate equity exchange ratios remain formidable hurdles. Neither firm has issued any official statements thus far; last year, Musk himself wrote on social media: “My various companies, surprisingly, are moving toward greater integration.”