Tesla and SpaceX are considering a merger - even more power for Musk?

Tesla and SpaceX are considering a merger. Even more power for Musk? As of: October 21, 2026 • 9:11 a.m

The two US companies Tesla and SpaceX, which are led by tech billionaire Elon Musk, are considering a merger. If this goes ahead, it would be the largest merger between two companies to date. But there are big hurdles.

The companies Tesla and SpaceX, led by tech billionaire Elon Musk, are considering a record-breaking merger. If the two companies merge, it would be the most important merger of two companies to date: SpaceX is currently worth more than $1.9 trillion on the stock market and Tesla is worth around $1.48 trillion.

According to Musk, the car manufacturer and the space company have formed special committees at the request of shareholders. The tech billionaire said this in a video conference on SpaceX's quarterly figures.

He himself is not part of it due to possible conflicts of interest. Musk is a major shareholder in both companies. These shares are the basis of his fortune, estimated at around 920 billion dollars (the equivalent of around 820 billion euros), which currently makes him the richest person in the world.

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After the announcement, Tesla shares rose by a good two percent in after-hours trading. This is a sign that investors are not expecting a large premium from a merger with SpaceX. SpaceX investors reacted completely differently: the shares rose by more than nine percent to over $160 in after-hours trading.

SpaceX only went public in mid-June with record proceeds of $75 billion. With the issue price of $135, Musk's company gave itself a valuation of almost $1.8 trillion at its debut. In the first few weeks after the IPO, the price rose - driven, among other things, by the interest of private investors - to a good $225. The share then temporarily slipped below the issue price.

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SpaceX can now at least justify its high valuation with black figures: In the last quarter, SpaceX recorded billions in profit after a long dry spell. The bottom line is that SpaceX posted a profit of $4.4 billion, and sales jumped from around $5.58 billion a year ago to $14.58 billion.

AI revenue in particular shot up from $813 million a year ago to $7.56 billion last quarter. Musk had already merged his AI company xAI, which was not listed on the stock exchange, into SpaceX. This is now called SpaceXSI and has built large data centers, some of which are now rented out to AI rivals such as Anthropic and Google for billions in fees. The AI ​​division generated an operating profit of $431 million - after being in the red of $1.7 billion a year earlier.

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There has been speculation about a merger between Tesla and SpaceX for a long time, but Musk has so far been evasive about it. Now he said that he personally thinks such a merger is a good idea. But it would be an “exaggeration” to say that this will “certainly” happen, he said. Musk pointed out, among other things, that such a step would require the approval of at least 50 percent of all Tesla shareholders.

Investor and long-time industry analyst Gene Munster also pointed out that a merger could make economic sense. Tesla has what SpaceX has so far lacked: the ability to let artificial intelligence interact with the real world via vehicles and robots, Munster argued on the business broadcaster CNBC. That's why he's assuming shareholder approval. “It would be the most unique company in the world in every way.”

Tesla and SpaceX are already cooperating on the massive Terafab chip factory that Musk wants to build in the USA. The property is still being cleared for this. Another product of the collaboration is cold gas rocket nozzles from SpaceX, at least on some variants of a new Tesla sports car that Musk says will go into production in 2028.

This topic in the program: tagesschau.de | Stock market: Outlook for the day - DAX, US stock exchanges, SpaceX, Netflix, Adidas | 10/21/26 | 06:41 amThe First | ARD morning magazine | Oct 21, 2026 | 05:30 am