Elon Musk announced that the boards of SpaceX and Tesla have established committees to evaluate a potential merger. If completed, the combined entity would have an estimated valuation of $3,5 trillion. Musk stated that the integration aims to consolidate resources including AI software, chip design, robotics, and orbital data centers.
The proposed deal follows a series of consolidations within Musk’s ventures. In February, SpaceX acquired xAI at a valuation of $250 billion, following a $2 billion investment from Tesla. In June, SpaceX completed its IPO. SpaceX reported third-quarter revenue of $14,58 billion, exceeding the expected $12,72 billion, and achieved its first quarterly profit since going public.
A central component of the strategy is Starmind, a project to deploy up to 1 million satellites for orbital AI computing, with deployment expected to begin in late 2027. Tesla would contribute the Terafab project, a $16,8 billion chip factory in Texas. Barclays estimates that Musk would control approximately 56% of the voting power in the merged company.
Market reaction to the announcement saw Tesla shares rise by nearly 4%, while SpaceX shares increased by 10%. Analysts suggest a deal could be announced before Tesla’s annual meeting on December 3, though Musk noted that a merger is not guaranteed. The transaction would require approval from 50% of all outstanding Tesla shares.
