Elon Musk is weighing one of the biggest corporate combinations ever: merging Tesla, the electric car and robotics company, with SpaceX, the rocket, satellite and AI business. On recent earnings calls, Musk said both companies have set up committees of independent directors to study the idea.
Together, the two are valued at roughly $3.5 trillion to $3.7 trillion, depending on when you measure. That's what the businesses are worth, not a price anyone has agreed to pay. No terms have been announced, and a deal is far from certain.
Why put cars and rockets together?
Musk's case is all about AI. Tesla is working on self-driving cars, humanoid robots and its own chips. SpaceX, which now includes xAI, is spending heavily on computing power and communications. Combined, they could share money, engineers and AI investment under one roof.
It's also complicated. The two companies have different shareholders and different risks. Independent boards would have to manage conflicts of interest, and any deal could face shareholder votes and regulatory review.
What "before Trump leaves office" really means
It's a reported target, not a legal deadline. People familiar with the discussions reportedly want a merger announced in the first half of 2027 and completed while President Trump is still in office, before his term ends in January 2029, on the view that today's environment may be more favourable. That doesn't mean approval has been promised, or that a future administration would block it.
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