Elon Musk has stated that a potential merger between Tesla and SpaceX is under active consideration, confirming that he supports the concept. Speaking during a quarterly financial results call for SpaceX, Musk indicated that he believes combining the two enterprises would be a beneficial move, though he emphasized that a deal is not guaranteed.
To explore the feasibility of the transaction, special committees have been established at both Tesla and SpaceX. Musk cautioned that the certainty of any merger should not be assumed, pointing out that any official agreement would ultimately require the approval of shareholders across both companies.
The scale of such a transaction would be unprecedented. With Tesla valued at roughly $1.5 trillion and SpaceX valued at $2 trillion, a consolidation would mark one of the largest corporate mergers in history. Musk explained that a full merger between the two companies would make sense for the work each is doing around semiconductor chips, artificial intelligence, software, and related technologies.
Beyond its core operations building space rockets and Starlink internet satellites, SpaceX has recently expanded into providing cloud compute capacity to external technology firms, including Google and Anthropic. This computing line of business has become the most profitable part of SpaceX, bringing in $7.5bn according to the latest quarterly results.
Despite the profitability of its cloud compute segment, SpaceX as a whole is not profitable and has lost $1.1bn so far this year. How might combining these distinct business profiles and technological goals reshape the future of both enterprises?
