Musk to merge Tesla with SpaceX?

Not for the first time there are again rumours - wholly unconfirmed - that once the SpaceX IPO is floated and wrapped up, that Elon Musk will merge SpaceX with Tesla. The SpaceX IPO will happen on June 12th.

The latest report originated on CNBC and suggested:

· There is already massive company operational overlap.

· They are separate entities only on paper.

· The speculation - again - gave Tesla shares a lift

CNBC added that a merger between the two would create a business with a value of more than $3 trillion. Recent analyst commentary, including from Wedbush's Dan Ives citing synergies in AI, robotics, and manufacturing, sees high probability of a 2027 merger, though SpaceX IPO filings indicate no immediate plans.

SpaceX (and by extension its xAI division) is a major customer of Tesla's energy business, using Megapacks for robotics power and data centre needs. This has been an ongoing commercial relationship, not a one-off, stated Business Insider.

In early 2026, Tesla and SpaceX announced the 'Terafab' project: a sprawling chip complex in Austin, Texas, with two advanced factories. One focuses on chips for Tesla cars and Optimus robots; the other produces radiation-hardened processors for AI data centres in space (tied to SpaceX's orbital ambitions). Musk described this as a massive shared effort to scale computing capacity.