Independent committees at Tesla and SpaceX are evaluating a potential merger to form an AI-focused conglomerate. Elon Musk confirmed the review on October 20, 2026, during a SpaceX earnings call, noting that he faces a conflict of interest as he leads both organizations.
Tesla currently holds a valuation of approximately $1.5 trillion, while SpaceX is valued at around $2 trillion. Projections suggest the combined entity could reach a valuation between $3.5 trillion and $3.6 trillion, with the proposal targeting a figure exceeding $3 trillion.
SpaceX reported Q3 2026 revenue of $14.6 billion, representing a 161% year-over-year increase, with a quarterly profit of $4.4 billion. The company's AI segment contributed $7.6 billion to this revenue, marking an 830% year-over-year growth.
The company is also developing hardware through its Terafab project, with initial test chips expected in May or June 2027. SpaceX previously acquired xAI in February 2026, which had earlier purchased the social platform X in 2025.
No formal terms have been established, and the timeline remains undefined. Any potential agreement requires approval from shareholders of both companies, and independent committees must still finalize the valuation framework and exchange terms.
