Tesla, SpaceX Explore Record Merger to Build AI and Robotics Powerhouse, Musk Says

Elon Musk said Tesla and SpaceX are considering a merger that would create the largest corporate combination ever, with the companies' boards forming special committees to weigh a deal. Musk disclosed the talks Tuesday during SpaceX's third-quarter earnings call, saying cooperation on superintelligence software would deliver major gains, while cautioning that shareholder support is required and a tie-up is not certain. SpaceX, valued at $2.15 trillion, would likely acquire Tesla, valued at $1.53 trillion, analysts said. SpaceX shares rose 3% to $386.47 on Wednesday, while Tesla gained nearly 8% to $159.31, adding $64 billion to Musk's net worth, which reached $989 billion. SpaceX's quarterly results beat Wall Street estimates across rocket launches, Starlink and AI. Analysts described the rationale as AI vertical integration, pairing Tesla's robotaxis and robots with SpaceX's computing infrastructure, Starlink network and xAI's Grok platform. Tesla's vehicle business is slowing, with third-quarter deliveries of just over 486,000, down from 497,000 a year earlier. Regulatory scrutiny is expected in Europe and China, and shareholders of both companies must approve any deal.