Elon Musk revives speculation of SpaceX-Tesla merger

Musk hinted at a possible future combination as the companies expand cooperation on AI, vehicles and a planned Texas chip plant.

Elon Musk has revived speculation that SpaceX could combine with Tesla, pointing to the close cooperation between the two companies he leads.

During a virtual appearance at the All-In Summit, Musk was asked why the businesses remain separate. “Great question,” he replied, adding that it was difficult to predict what action someone might take when the companies collaborate in so many areas.

The exchange came while Musk discussed Tesla’s next-generation Roadster. He has previously said the vehicle could offer a SpaceX option package using small rocket thrusters to improve acceleration and top speed.

Speculation about a merger has grown as Musk reshapes his business empire. SpaceX acquired the artificial-intelligence company xAI in February, and the combined company went public in June in what Bloomberg described as the largest IPO of all time. Musk has also repeatedly described a future “convergence” among his companies.

SpaceX and Tesla are working together on Terafab, a planned semiconductor fabrication facility in Texas intended to manufacture chips in the US.

The project has been presented as a way to support the companies’ technology ambitions, particularly as demand for AI hardware grows.

SpaceX President Gwynne Shotwell also appeared at the All-In event. When asked whether the company planned to buy more businesses, she joked about her electric cars, adding to the lighthearted merger speculation.

Musk has not announced a transaction or provided a timetable for combining SpaceX and Tesla. The companies remain separate businesses, but their shared work on AI, vehicles, chips and other technology continues to fuel investor interest in a potential tie-up.

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