Elon Musk May Combine Tesla and SpaceX by 2027, Sources Say

Elon Musk is reportedly planning to merge Tesla and SpaceX by 2027 as he prepares to take SpaceX public. This potential consolidation would position Musk at the forefront of two of the largest U.S. companies by market value.

Elon Musk’s Plans for Tesla and SpaceX Merger

As SpaceX approaches its anticipated NASDAQ debut in just over two weeks, speculation has grown about Musk’s intention to unify his two major ventures. SpaceX recently achieved a $1.25 trillion private valuation following its merger with Musk’s xAI, while Tesla currently holds a market valuation near $1.6 trillion.

Sources familiar with the matter, who requested anonymity due to the sensitivity, revealed that Musk has discussed the possibility of merging Tesla and SpaceX with his colleagues. Employees at Tesla have reportedly been aware of such discussions and openly talk about the potential deal internally.

Shared Resources and AI Focus Drive Collaboration

Despite operating in distinct sectors—SpaceX as a government contractor launching rockets and Tesla as an electric vehicle manufacturer—the two companies have increasingly collaborated, particularly in addressing common power and computing challenges. Both are heavily investing in artificial intelligence, requiring similar talent and infrastructure.

SpaceX allocated over 75% of its $10.1 billion capital expenditures in the first quarter to AI development. Meanwhile, Tesla announced plans to nearly triple its capital expenditures this year, exceeding $25 billion, with a significant portion dedicated to AI initiatives.

Industry Reactions to Merger Speculation

Tomasz Tunguz, a former engineer and current venture capitalist at Theory Ventures, noted that the merger rumors have generated significant attention within Silicon Valley’s technology community. However, he acknowledged that executing a merger of this scale would be highly complex.

Tejpaul Bhatia, a longtime SpaceX investor and CEO of Nebex, commented on Musk’s ability to manage multiple large enterprises simultaneously. He stated, “I think it’s been proven by Elon himself,” while also observing that Musk’s approach to parallel entrepreneurship appears effective.

Requests for comment from both SpaceX and Tesla were not answered.