Elon Musk offered his clearest signal yet regarding a potential merger between Tesla and SpaceX during the All-In Summit in Los Angeles, suggesting that the deepening collaboration between the two entities makes the question of consolidation increasingly relevant.
What Happened
When asked why Tesla and SpaceX remain separate despite their close working relationship, Musk responded, "Great question there. With all this collaboration, on so many levels, who can imagine what action one might take when there’s so much close collaboration in so many areas." SpaceX President Gwynne Shotwell, who appeared on stage with Musk, confirmed that SpaceX personnel have already moved into xAI to address leadership and engineering gaps. She noted that the businesses are integrating "faster than I thought," although she clarified they are "not fully integrated yet."
Why It Matters
The comments coincide with rising speculation on Wall Street. JPMorgan analysts have described a tie-up as "strategically coherent on paper," citing overlapping ambitions in AI, robotics, energy, transportation, and space. Jefferies estimated that Musk could retain approximately 55.3 percent voting control in a deal structured without a premium. On the prediction market Kalshi, traders currently assign a 66 percent probability to a merger occurring before 2028.
Operational ties are also strengthening. The two companies are jointly building Terafab, a chip facility in Austin intended to serve both Tesla’s AI computing needs and SpaceX’s satellite ambitions. Additionally, SpaceX shares rose about 0.4 percent in premarket trading Tuesday, while Tesla remained essentially flat after both stocks dipped roughly 2 percent on Monday.
The Bottom Line
While Musk stopped short of confirming immediate action, his response did not rule out a restructuring, marking a distinct shift from his previous denials of corporate consolidation between the two companies.