Elon Musk's enterprises, including Tesla, SpaceX, and xAI, are increasingly interconnected through shared resources and investments, fueling talks of potential mergers. Reports indicate early discussions for combining SpaceX with either Tesla or xAI ahead of a possible SpaceX IPO in late 2026. Such moves could create a trillion-dollar tech giant integrating electric vehicles, aerospace, and artificial intelligence.
Elon Musk leads five major companies—Tesla, SpaceX, the Boring Company, Neuralink, and xAI, which recently absorbed his social media platform X. Over the past three years, these firms have expanded internal dealings, including employee sharing, product purchases, and multi-billion-dollar investments, forming a tightly knit corporate ecosystem centered on Musk.
Employee exchanges highlight the integration. In 2022, shortly after acquiring Twitter (now X), Musk reassigned about 50 Tesla engineers to overhaul X's code-review systems, describing their involvement as voluntary. Executives also overlap; for instance, Charlie Kuehmann serves as vice president of materials and engineering at both Tesla and SpaceX.
Business transactions further bind the companies. SpaceX purchases Tesla's batteries for robotics and Megapack energy-storage systems, and has reportedly invested $2 billion in xAI during a prior funding round. Tesla, in turn, agreed to invest $2 billion in xAI, alongside a framework for deeper collaboration. xAI's Grok AI is integrated into Tesla vehicles for navigation and chat functions, and powers early demos of Tesla's Optimus humanoid robots.
The Boring Company operates Tesla vehicle fleets in its Las Vegas and Texas tunnels, while SpaceX has acquired Cybertrucks. Musk has teased a Tesla-SpaceX collaboration for the next-generation Roadster, incorporating SpaceX cold-gas thrusters, with a launch event slated for April 1.
Speculation of mergers has intensified. People familiar with the matter describe early talks for a SpaceX-xAI combination before a potential late-2026 SpaceX IPO, or linking SpaceX with Tesla to enhance aerospace and data synergies. SpaceX's valuation stands at about $800 billion from a late-2025 share sale, while xAI reached $230 billion after raising $20 billion in its Series E round. A combined entity could exceed $1 trillion, potentially reshaping technology sectors by merging physical infrastructure with AI capabilities.
Analysts offer mixed views. Lou Whiteman of The Motley Fool noted that inter-company ties make sense if governance ensures fair pricing, but critics worry about concentrated power in Musk's hands, given Tesla's board includes his allies like his brother. Investors may embrace the vision, as many back Musk's broader ambitions beyond just automobiles. None of Musk's companies responded to comment requests.
Tesla's stock trades at $430.41, slightly above analyst targets of $415.87, though flagged as overvalued by some assessments. Any merger would raise questions on governance, capital allocation, and regulatory scrutiny.
