As Elon Musk prepares to take SpaceX public in what could become one of the biggest IPOs in U.S. history, reports are emerging that Musk has privately floated a merger SpaceX with Tesla.
According to CNBC, Musk has privately discussed the possibility of combining Tesla and SpaceX into a single entity with colleagues and insiders familiar with the conversations. While no formal plans have been announced, the timing of the speculation is notable as SpaceX (SPCX) is expected to begin trading on the Nasdaq within weeks at a valuation reportedly nearing $1.75 trillion.
If such a merger were ever to happen, it would create a corporate giant worth well over $3 trillion based on current valuations, combining Tesla’s electric vehicles, robotics and AI ambitions with SpaceX’s rocket launches, Starlink satellite network, and expanding artificial intelligence infrastructure.
At first glance, Tesla and SpaceX operate in completely different industries. However, the companies are already deeply connected financially and operationally. According to SpaceX’s IPO prospectus, the aerospace company purchased nearly $700 million worth of Tesla Megapack battery storage systems over the last two years to support xAI data centers in Tennessee.
SpaceX also spent another $131 million on Tesla Cybertrucks in 2025 alone.
However, collaboration between the companies extends beyond simple purchases. Tesla and SpaceX have previously worked together on specialized materials engineering, solar technology, manufacturing projects, and shared engineering talent.
Still, a merger of this scale would face enormous complexity. Legal experts say questions around valuation, shareholder protections, governance, and stock conversion structures would make any transaction incredibly difficult to execute.
Musk himself has remained quiet publicly. During a recent appearance, he declined to comment on merger speculation, citing restrictions related to the upcoming SpaceX IPO.
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