Elon Musk, the entrepreneur behind SpaceX and Tesla, has once again hinted at the possibility of merging his rocket company, SpaceX, with the electric car manufacturer, Tesla, to cover artificial intelligence business operations. Musk emphasized the extensive collaboration between the two companies under his leadership as CEO.
At the “All-In Summit 2026,” Musk participated in the event via video link and was asked about the upcoming next-generation Roadster sports car that Tesla is set to unveil. Musk had previously mentioned that Tesla would offer a “SpaceX option package,” utilizing small rocket thrusters to enhance the vehicle’s acceleration and top speed.
During the summit, one of the co-hosts, David Friedberg, asked Musk, “Elon, why do you still maintain two separate companies?”
“A good question,” Musk replied. “When two companies engage in such close collaboration across multiple fields, who can predict what actions they might take?”
Speculation about Musk potentially merging SpaceX and Tesla has been on the rise recently. SpaceX acquired the AI company xAI in February, and the merged company went public in June with a record-setting IPO size of $75 billion, reaching a valuation of $14.8 trillion in its first month of trading. As of the market close on September 14, SpaceX’s total market value is approximately $1.90 trillion to $1.95 trillion, with an intraday high valuation touching around $2.05 trillion due to real-time stock price fluctuations.
As of September 15, Tesla’s latest total market value was around $1.43 trillion.
Musk frequently discusses the “integration” between his companies, fueling such speculation. SpaceX and Tesla are collaborating on a large joint project called “Terafab,” a planned manufacturing facility aimed at producing semiconductors domestically in the U.S., starting from Texas.
Prior to Musk’s appearance at the All-In Summit, SpaceX President Gwynne Shotwell joked with one of the co-hosts about the possibility of the company merging with Tesla. The conversation continued after discussing SpaceX’s acquisition of the AI programming startup Cursor.
During the Tesla Q2 earnings call in July, when asked about the possibility of a merger, Musk responded that the two companies have seen an increasing overlap and collaboration in various areas such as the Terafab project. However, he also stressed that discussions about mergers should follow the appropriate procedures and could not be addressed during an earnings call.
In addition, Gwynne Shotwell, President and COO of SpaceX, revealed during a CNBC interview in June that integrating the two companies “might make Musk’s life a little easier,” simplifying the management challenges across the companies.