Jan. 29 (GeokHub) Elon Musk’s space exploration company SpaceX is exploring the possibility of a merger with electric vehicle maker Tesla, Bloomberg News reported on Thursday, citing people familiar with the discussions, in a move that could further reshape Musk’s sprawling business empire.
Tesla shares rose about 3% in after-hours trading following the report, reflecting investor interest in a potential combination of two of Musk’s most high-profile companies.
Multiple Merger Paths Under Review
According to Bloomberg, SpaceX has also considered an alternative merger involving Musk’s artificial-intelligence company xAI. The talks are said to be at an early stage, with no final decision made on whether any transaction will move forward.
Earlier on Thursday, Reuters exclusively reported that SpaceX and xAI were already in discussions about a merger ahead of a major public offering planned for later this year. That combination would bring together SpaceX’s rocket and satellite operations, Starlink’s global internet network, the X social media platform and the Grok AI chatbot under a single corporate structure.
Investor Interest Growing
The Bloomberg report said some investors have been actively encouraging Musk to explore a SpaceX–Tesla tie-up, arguing that deeper integration could unlock strategic advantages across transportation, communications and artificial intelligence.
Any deal could draw strong interest from global infrastructure funds and Middle Eastern sovereign wealth investors, the report added, given SpaceX’s central role in satellite communications and Tesla’s dominance in electric vehicles and energy storage.
No Official Comment Yet
Neither SpaceX nor Tesla immediately responded to requests for comment. Musk has not publicly addressed the merger speculation, though he has previously spoken about the long-term benefits of tighter alignment between his companies.
If pursued, a merger involving SpaceX, Tesla or xAI would mark one of the most ambitious corporate consolidations in recent history, potentially redefining how investors value Musk’s businesses ahead of any future listings.
