Elon Musk suggested during Tesla's Q2 2026 earnings call that a merger with SpaceX may be possible, citing growing overlaps between the companies. He emphasized that any such step would require the appropriate formal process.
During the call, Musk responded to a question from Colin Rusch of Wells Fargo about potential synergies. He noted the existing collaborations and stated there is “more and more overlap,” particularly with the Terafab project.
Musk added that discussions about combining the companies could not occur on the earnings call itself. He said any merger “has got to be done with the appropriate process” and referred the matter to Tesla general counsel Brandon Ehrhart.
Ehrhart confirmed the companies’ close ties, including a framework agreement for Terafab and Tesla’s conversion of its $2 billion xAI investment into SpaceX shares. SpaceX and xAI entities purchased roughly $650 million in goods and services from Tesla in 2025.
Musk highlighted further connections, such as integrating Grok into Tesla vehicles and Starlink into the Cybercab for reliable connectivity.