Elon Musk is making headlines once again, this time with the news that SpaceX is set to go public on the Nasdaq in just over two weeks. And with this announcement, speculation about a potential merger between SpaceX and Tesla has already begun.
According to a report from CNBC, sources familiar with the matter have revealed that Musk has discussed the idea of combining the two companies with his colleagues. Inside Tesla, employees are reportedly not keeping quiet about the possibility of a merger, with many expecting some sort of deal to eventually come to fruition.
While on the surface, rockets and electric cars may not seem to have much in common, both SpaceX and Tesla have quietly transformed into AI businesses at their core. This shared focus on artificial intelligence is where the logic behind a potential merger starts to become clear. Building robust AI infrastructure requires massive computing power and specialized talent, two areas where both companies excel. SpaceX recently acquired Musk’s AI startup xAI, boosting its private market valuation to $1.25 trillion, while Tesla currently sits at around $1.6 trillion. A combined entity would undoubtedly become one of the most valuable companies in the world.
The two companies already have deep connections, sharing engineers, board members, and financial ties. SpaceX recently made significant investments in Tesla’s technology, purchasing $697 million worth of Tesla Megapack batteries to power its AI data centers, as well as $131 million on Cybertrucks. At this point, the two companies are less like separate entities and more like two divisions of the same operation.
If Musk decides to move forward with a merger, there are few obstacles standing in his way within SpaceX, as he controls 85% of the voting power. Consolidating everything under one roof would give him the capital firepower needed to compete head-to-head with other tech giants in the AI race.
Overall, the potential merger between SpaceX and Tesla represents a bold and ambitious move that could reshape the future of both companies and the tech industry as a whole. Only time will tell if Musk decides to make this groundbreaking decision.