SpaceX and Tesla are discussing a potential merger to combine their AI, robotics, and aerospace businesses. Elon Musk said on a recent earnings call that a union would be "a good idea." The companies formed special committees to talk, though regulatory hurdles and complex defense contracts remain major concerns.
The proposed merger would unify Elon Musk's AI, robotics, EV and aerospace ambitions under a single corporate roof, though it faces steep regulatory hurdles over SpaceX's US defense contracts and Tesla's reliance on China.
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Musk said on SpaceX's third-quarter earnings call last month that a merger with Tesla would be "a good idea" and confirmed the companies had formed special committees of independent directors to discuss a union.
SpaceX and Tesla could not be immediately reached for comment on the report. As of last close, SpaceX had a market cap of about $1.90 trillion while Tesla is valued at around $1.55 trillion.
The companies have also discussed a scenario in which the announcement slips into early 2027, the report said.
SpaceX and Tesla also have a chip manufacturing joint venture, Terafab. The JV should produce its first test chip around May or June of next year and aims to reach volume production by the third quarter of 2028, Musk said on the call.
Reporting by Prathik Jayaprakash in Bengaluru; Editing by Sriraj Kalluvila and Leroy Leo