Elon Musk's SpaceX is exploring a potential merger with Tesla or xAI, according to a Bloomberg report citing sources familiar with the matter. The discussions remain in early stages with no decisions made. Tesla's shares rose 3% following the after-hours report.
Elon Musk-led SpaceX has discussed the feasibility of a tie-up with Tesla, an idea backed by some investors. The company has also explored a possible combination with xAI ahead of a potential stock market listing. Bloomberg News reported on Thursday, citing people familiar with the matter, that these talks are private and in early stages. Musk has been consulting advisers and investors on various merger options involving SpaceX, Tesla, and xAI to better align the companies' long-term goals. The three firms collaborate closely in areas like technology, data, and talent. However, any merger would likely face scrutiny from investors and regulators due to Musk's overlapping roles and influence. Tesla's shares have been volatile in recent months, while SpaceX remains privately held and ranks among the world's most valuable startups. xAI, launched in 2023, represents Musk's venture into artificial intelligence and powers the chatbot Grok. Sources cautioned that the discussions could collapse and may not result in any deal. Neither SpaceX, Tesla, nor xAI has publicly commented on the reports.
