Tech mogul says tie-up has a ‘lot of advantage’, given corporations’ complementary work on AI.
Revealed On 21 Oct 2026
Elon Musk has revealed that SpaceX and Tesla are exploring a potential merger, a tie-up that may create a company colossus value greater than $3 trillion.
Musk stated on Tuesday that his two largest corporations had established particular committees to discover a merger.
Beneficial Tales
checklist of 4 objectsfinish of checklist
The SpaceX and Tesla CEO stated the concept had a “lot of advantage”, given the businesses’ complementary work on synthetic intelligence, however the committees had not come to any settlement on a proposal.
“They’ve bought to give you one thing, after which that’s bought to be put to the shareholders as a vote,” Musk stated on a SpaceX earnings name.
Musk, the world’s richest man with a web value of greater than $900bn, stated {that a} merger would wish to clear the “excessive hurdle” of a 50 % vote amongst Tesla shareholders
“Some folks on the market assume {that a} SpaceX and Tesla merger is a certainty, and I feel that may be overstating it,” Musk stated.
“Do I feel it could be a good suggestion? Sure. However on the finish of the day, the shareholders need to be supportive of this.”
Largest company merger ever
A SpaceX-Tesla merger would rank as the largest company tie-up in historical past, far exceeding the $1.25 trillion union between SpaceX and xAI in February.
At present valuations, SpaceX and Tesla rank because the world’s seventh- and eleventh-largest corporations, respectively, with a mixed market capitalisation of about $3.5 trillion.
Jerayr Haleblian, an professional in mergers and acquisitions on the College of California, Riverside, stated a SpaceX-Tesla merger has “sound logic” to help it.
“In some sense, the core of each companies are professional manufacturing. From a know-how switch perspective, there needs to be important flows of knowledge between companies,” Haleblian informed Al Jazeera.
“Each corporations appear to have experience in robotics, AI, power infrastructure,” he stated.
“Accordingly, the core expertise are relevant throughout trade sectors. The important thing to success might be synergistic innovation, which I anticipate will comply with from acquisition.”
Inventory market enhance
Shares of SpaceX, which went public in June within the largest Preliminary Public Providing (IPO) of all time, rose greater than 8 % in after-hours buying and selling following Musk’s feedback.
Tesla shares gained 1.8 %.
Musk’s feedback got here as SpaceX on Tuesday reported its first quarterly revenue, pushed by sturdy development in its AI and satellite-internet divisions.
Web revenue was $4.4bn within the July-September quarter, a reversal from a $1.05bn web loss a 12 months earlier.
Revenue within the first three quarters totalled $413m, versus a lack of $2.59bn throughout the identical interval a 12 months earlier.
