Elon Musk has said that he is considering reshaping future technology, energy and space exploration merging Tesla and SpaceX into two biggest companies.
“The special committees have not reached agreement on terms of any transaction and there’s no guarantee that they will. But I do think there is a lot of merit to merging and a lot to be gained,” Musk said.
He said such merger should not be assumed, as they will need shareholder support.
Tesla is valued roughly $1.5 trillion and SpaceX valued at $2 trillion, a total of $3.5 trillion, marking one of the largest mergers in history.
Within hours, SpaceX surged 8% in after-hours trading, while Tesla gained nearly 2%, reflecting investors excitement about the potential synergies between Musk’s flagship enterprises.
Musk has cautioned that the deal is far from guaranteed, stressing that independent committees at both companies are reviewing the proposal and that shareholder approval remains a high hurdle.
SpaceX, which builds space rockets and Starlink internet satellites, is now expanding into offering cloud computing capacity for other tech companies, like Anthropic and Google, while Tesla is known for electric cars.
He added that the two companies combined into a full merger would unify the work for each is doing around chips, artificial intelligence, software and more. This will aim to unify strengths under one corporate umbrella, creating a powerhouse capable of driving innovation across industries.
He also projected that SpaceX’s annual recurring revenue could reach $500 billion to $1 trillion by 2027, with a current focus on AI infrastructure.
