Elon Musk Addresses Tesla and SpaceX Merger Speculation During Earnings Call – Sort Of

Elon Musk was asked directly about the possibility of Tesla and SpaceX merging during Tesla’s Q2 2026 earnings call on Wednesday. While he didn’t answer the question outright, the CEO acknowledged the growing collaboration between the two companies before explaining why he couldn’t discuss such a topic on the call.

After avoiding and not directly answering any of the investor submitted questions, Wells Fargo analyst Colin Langan asked Musk whether Tesla and SpaceX might one day merge into a single entity. The question came after growing speculation in recent months that Musk’s two biggest companies would join forces.

Rather than dismissing the suggestion, Musk acknowledged the increasing overlap while making it clear the discussion could not go any further during a public earnings call.

“Well, I mean, as you can tell from the many collaborations on so many fronts with SpaceX and there’s a lot — there’s more and more overlap, especially with Terafab, that’s really going to be a gigantic project,” Musk said.

He then added that any discussion about a potential merger would need to happen through the proper legal and corporate channels.

“…obviously, we can’t talk about combining companies and that kind of thing on an earnings call. It’s got to be done with the appropriate process,” he explained.

He then handed the conversation over to Tesla General Counsel Brandon Ehrhart, who limited his comments to describing SpaceX as a valuable partner that works with Tesla on several beneficial projects.

Collaboration Between Tesla and SpaceX Continues to Grow

While Musk stopped well short of confirming any plans, the comments highlight how closely the two companies are already working together.

One of the most notable joint efforts is Terafab, a semiconductor manufacturing facility being developed to produce advanced AI chips. Musk described the project as one of the biggest areas where Tesla and SpaceX are becoming increasingly intertwined.

Beyond Terafab, the companies already share expertise in manufacturing, engineering and artificial intelligence (AI). Tesla has also supplied batteries and manufacturing technologies for certain SpaceX programs, while engineers have moved between the two organizations over the years.

Investors Continue to Debate the Possibility

Musk’s remarks are unlikely to end speculation. Instead, they may fuel it. Several Wall Street analysts have recently argued that a combination of Tesla and SpaceX could eventually make strategic sense, citing the companies’ overlapping work in AI, robotics, manufacturing, energy storage and autonomous systems.

Others, however, point to significant obstacles, including regulatory approvals, governance issues and Musk’s different ownership stakes in each company.

For now, there is no indication that a merger is actively being pursued. However, Musk’s refusal to dismiss the possibility, and his emphasis on the growing collaboration between Tesla and SpaceX will likely ensure speculation about a potential merger continues for the foreseeable future.