SpaceX and Tesla have formed special committees to evaluate a potential merger. Elon Musk stated that there is significant merit in combining the two companies to collaborate on the development of superintelligence software.
SpaceX reported $7.56 billion in revenue for its artificial intelligence division in Q3, with $7 billion coming from solutions and infrastructure, including compute rentals. Tesla, meanwhile, experienced two consecutive quarters of declining profits.
The companies are already collaborating on AI projects such as Terafab and Macrohard. Terafab, a chip-making venture in Texas, aims to produce its first test chip by May or June 2027, with volume production targeted for the second half of 2028.
A merger could consolidate Musk's control, as he currently holds over 50 percent of voting power at SpaceX but only about 20 percent at Tesla. Analysts suggest a deal could be pursued by the first half of 2027 to close during the current administration.
Legal experts note that both companies are based in Texas, which limits shareholder litigation options. A merger could also impact Musk's Tesla compensation package by removing operational milestones in the event of a change of control.
