Elon Musk is reportedly considering a merger between SpaceX and Tesla, or a tie-up with xAI, as the rocket company prepares for a possible $1.5 trillion stock market flotation. The discussions highlight synergies in AI, robotics, and space technology, while drawing attention to the companies' combined bitcoin holdings of nearly 20,000 BTC. Legal entities suggestive of merger activity were filed in Nevada earlier this month.
Reports indicate that Elon Musk is exploring options to consolidate his business empire, including a potential merger of SpaceX with Tesla or a partnership with his artificial intelligence firm xAI. According to Reuters and Bloomberg, SpaceX is examining these possibilities ahead of a planned initial public offering that could value the company at $1.5 trillion and raise up to $50 billion, potentially timed for early summer 2026 to align with a planetary event and Musk's 55th birthday on June 28.
The merger talks come as Tesla pivots from traditional electric vehicles toward AI and robotics. Musk announced the discontinuation of Model S and Model X production, converting the Fremont, California factory to manufacture Optimus humanoid robots. Tesla's recent quarterly earnings revealed slumping vehicle sales and declining revenue, described as a transition to a "physical AI company" focused on autonomous driving, robotaxis, and robotics. Tesla shares fell 3.5% during trading but climbed 4.5% after hours, valuing the company at about $1.56 trillion.
Synergies could include SpaceX's Starship rockets transporting Optimus robots to the moon and Mars, space-based datacenters for AI computing benefiting xAI, and Tesla's energy storage systems powering solar operations in orbit. Two Nevada legal entities named with "merger sub" were established on January 21, listing SpaceX CFO Bret Johnsen as an executive.
The discussions also spotlight the companies' bitcoin holdings: SpaceX with 8,285 BTC worth $680 million since early 2021, and Tesla with 11,509 BTC valued at $1 billion, unchanged in Q4 2025. Combined, this totals nearly 20,000 BTC at $1.7 billion, making it one of the world's largest corporate positions. Tesla reported a $239 million after-tax loss on digital assets last quarter amid bitcoin's drop from $114,000 to the high $80,000s. No plans to buy or sell bitcoin are signaled in the merger context.
Musk holds a 42% stake in SpaceX, controlling 79% of voting rights, with other investors including Founders Fund (10.4%), Fidelity (10.2%), and Google Ventures (7.4%). SpaceX CFO Johnsen told employees an IPO would support an "insane flight rate" for Starship development and a potential moon base, aligning with President Trump's goal before January 2029.