According to Bloomberg , Elon Musk is assessing the possibility of consolidating his business empire, considering a merger between aerospace giant SpaceX and electric vehicle leader Tesla, or a merger between SpaceX and artificial intelligence company xAI. This reflects Musk's attempt to strengthen his global technological competitiveness through vertical integration, combining space communications, energy storage, and AI computing technologies. While no final decision has been made and the companies involved have not officially responded, the newly established legal entity in Nevada has already sparked strong expectations for a merger.
Musk's strategic integration: Building an interplanetary AI computing system
According to sources familiar with the matter, Musk is considering merging SpaceX with Tesla, or merging SpaceX with artificial intelligence company xAI.
Musk's core vision lies in deploying computing centers in space. If SpaceX and xAI merge, xAI will be able to directly leverage SpaceX's satellite network in orbit to provide powerful computing capabilities, overcoming the space and cooling limitations of ground-based data centers. Meanwhile, Tesla's energy storage technology can provide solar energy storage solutions for these space-based data centers. If this technological symbiosis is realized, it will give Musk a significant competitive advantage in the field of AI infrastructure.
The emergence of a new corporate entity headed by the CFO caused TSLA shares to surge by as much as 4.5%.
Tesla currently has a market capitalization of approximately $1.4 trillion, while SpaceX, which plans an IPO, is valued at up to $1.5 trillion. Such a massive merger requires substantial financing. Reports indicate that Middle Eastern sovereign wealth funds and infrastructure funds have shown strong interest. Furthermore, two new company entities with "Merger Sub" in their names have recently emerged in Nevada, headed by SpaceX CFO Bret Johnsen, which is typically considered a preliminary step in the merger process.
Reuters previously reported on a potential merger between SpaceX and xAI. Citing sources familiar with the matter, Reuters stated that xAI shares would be exchanged for SpaceX shares.
Fueled by this news, Tesla's stock price rose as much as 4.5% in after-hours trading on Thursday. The market reacted positively, primarily because investors believe SpaceX's growth potential and stable contract revenue can provide valuation support for Tesla, which is facing competitive pressure. However, corporate consolidation also faces significant challenges, including how to handle complex cross-shareholding relationships, and the potential incentive for management to choose cash rather than equity during the SpaceX-xAI merger process.
Musk's long-term vision: From Earth's energy to Mars colonization
Beyond technological integration, Musk has also discussed using SpaceX's Starship to transport Tesla's Optimus humanoid robot to the Moon and even Mars. This suggests that his potential merger plans are not merely for financial optimization, but rather a blueprint for long-term interplanetary expansion. Despite numerous legal and technological hurdles, this vision of combining hardware manufacturing, energy transition, and cutting-edge AI software has redefined the boundaries of the future technology industry.
SpaceX is considering a June IPO, and Robinhood is vying for a key role.
Sources familiar with the matter revealed that SpaceX is considering an IPO in June, around the time of Elon Musk's birthday, and may seek to raise up to $50 billion. This would make it the largest IPO in history. Bank of America, Goldman Sachs, JPMorgan Chase, and Morgan Stanley are expected to play significant roles.
Robinhood, a rising brokerage firm popular with young people, is vying for a key role in SpaceX’s blockbuster initial public offering.
This article, "Musk's Empire Undergoes Major Consolidation: Will SpaceX Merge with Tesla or xAI for an IPO?", first appeared on ABMedia .
