Numerous reports, even one from CNBC, have been floating online about Elon Musk reportedly wanting to merge his Tesla and SpaceX businesses. SpaceX is moving towards its highly anticipated IPO (Initial Public Offering) on June 12, 2026. The space venturing company is targeting a valuation of $1.75 trillion to $2 trillion, making it the largest stock market debut in history. However, a Tesla-SpaceX merger could lead to a much higher valuation for both companies. Let’s discuss.
Should Elon Musk Merge Tesla And SpaceX?
SpaceX merged with Musk’s AI platform, xAI, earlier this year. If Tesla also joins the group, it would bring Musk’s AI, space, and electric ventures all under one roof. According to CNBC, many Tesla employees have long expected such a transition. Both companies have often collaborated and shared resources.
While all three companies may seem very different, the AI aspect may bring all of them together. According to Tomasz Tunguz, venture capitalist at Theory Ventures and former engineer, “Tesla has to run powerful AI systems inside a moving vehicle with tight limits on power, cooling, latency, reliability and cost. SpaceX has to think about compute in orbit, where radiation, thermal cycling, launch mass, power generation and heat rejection all become existential design constraints.“
Tesla disclosed its $2 billion xAI investment in January of this year. However, the AI company merged with SpaceX the very next month.
SpaceX bought $697 million worth of Tesla’s Megapack battery energy storage systems in 2024 and 2025 to power xAI’s data centers. SpaceX also said it paid $131 million for Tesla Cybertrucks in 2025 at the manufacturer’s suggested retail price.
Also Read: Can Tesla Stock Hit New Peak After SpaceX’s June 12 IPO?
A Tesla-SpaceX merger would also help Musk fulfill his performance package requirements. Tesla needs to hit a valuation of $7.5 trillion. A merger between the two companies could propel Tesla to a valuation of $3.5 trillion, bringin it closer to the $7.5 trillion target.
News Link: https://watcher.guru/news/elon-musk-may-merge-tesla-and-spacex-post-ipo