SpaceX and Tesla have formed special committees to explore a potential $3.5 trillion merger, as Elon Musk pushes deeper into AI and robotics.
The boards of SpaceX and Tesla are exploring a potential merger that could unite Elon Musk’s space exploration and electric vehicle businesses in one of the largest corporate combinations in history.
According to the Financial Times (FT), Musk confirmed on Tuesday that both companies had established special committees to examine the proposed transaction, although no agreement has been reached and its completion is not guaranteed.
Musk, who leads both companies, described the merger as a potentially beneficial move but stressed that shareholders must support the deal. He also said he could not participate in the discussions because of his executive positions at the two companies.
SpaceX is valued at approximately $2 trillion, while Tesla’s market value is nearly $1.5 trillion, putting their combined valuation at about $3.5 trillion before any adjustments arising from a possible transaction.
The proposed merger could strengthen Musk’s ambitions in artificial intelligence (AI), robotics, semiconductor manufacturing and space-based computing infrastructure.
The two companies have already deepened their collaboration. In March, Musk announced Terafab, a proposed semiconductor manufacturing project in Texas intended to produce chips for autonomous vehicles, humanoid robots and orbital AI data centres.
Musk argued that combining the businesses could create substantial advantages in superintelligence software, chip design, robotics, satellite connectivity and launching computing infrastructure into orbit.
Their collaboration has also extended to vehicle development, including a proposed SpaceX-associated version of Tesla’s Roadster featuring cold-gas thrusters.
The potential merger comes as SpaceX expands its AI computing business and invests heavily in data centres and advanced chips. The company has also recorded significant growth in its Starlink satellite internet operations.
However, the proposed deal remains uncertain. The special committees have yet to agree on transaction terms, and shareholder approval will be a critical consideration.
If completed, the merger would bring together electric vehicles, reusable rockets, satellite communications and AI infrastructure under a single corporate structure, further consolidating Musk’s business interests.
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