Elon Musk’s SpaceX, Tesla, and xAI are considering strategic merger options, according to reports. While discussions are in the preliminary phase, investors are watching closely as potential consolidation could reshape the structure of Musk’s business empire.
Bloomberg and Reuters reported that two main scenarios are under review. One would see SpaceX and Tesla combining, with undisclosed sources telling Bloomberg that such a deal would bring together the rocket and electric vehicle businesses. Another possibility, according to Reuters, involves integrating SpaceX and xAI ahead of a planned public debut of the artificial intelligence company, forming a conglomerate uniting Musk’s aerospace, satellite, social media, and AI ventures.
No official comments regarding the merger plans have been made by SpaceX or xAI. However, recent regulatory documents show two newly established Nevada-based entities, K2 Merger Sub Inc. and K2 Merger Sub 2 LLC, which point to ongoing preparations for various strategic options.
Potential benefits include the opportunity for xAI to utilize space-based data centers, a concept Musk has previously endorsed. Moreover, a SpaceX-Tesla merger could tie Tesla’s energy storage capabilities to advancements in space-driven data infrastructure.
These scenarios align with Musk’s recent moves to increase cooperation and investments across his portfolio. Last year, SpaceX invested $2 billion into xAI, according to Wall Street Journal. Earlier this week, Tesla disclosed a $2 billion investment of its own into the AI company.
Some Tesla investors have previously voiced support for uniting Musk’s companies. Bloomberg has noted ongoing pressure from shareholders for closer ties between SpaceX and Tesla.
