Elon Musk considers a merger between Tesla, SpaceX and xAI, credible reports say

According to a new report by Bloomberg, Elon Musk is seriously considering a merger between SpaceX and Tesla or between SpaceX and xAI, which in turn already owns X (formerly Twitter). A three-way merger between all three companies is also on the table.

The information comes from Bloomberg, but Reuters also adds that the potential SpaceX - xAI merger would involve a 1:1 exchange of xAI stocks for SpaceX stocks. It's also worth noting that SpaceX is expected to go public in mid-2026 with a value beyond $1 trillion.

Now, while a merger between privately-owned SpaceX and xAI is a bit easier to swallow, a merger with Tesla would probably cause its investors a few sleepless nights.

Back in 2016, Tesla acquired SolarCity, while in 2025, xAI absorbed X (Twitter), and only last week, xAI received a $2 billion infusion from Tesla.

Since Elon Musk has a huge stake in xAI and SpaceX and he's the CEO of Tesla, there's a clear conflict of interest. Musk is supposed to negotiate the details of the deal practically with himself.

Elon Musk is expected to value all three companies equally, with their own features. Tesla has declining sales, SpaceX has government contracts and Starlink, while xAI is burning through a serious amount of cash, trying to keep up with Google and OpenAI in the AI race.

So a merger with Tesla could mean Elon Musk taking more control of the company, while bailing out xAI investors, which were less than happy when Elon decided to merge X/Twitter with xAI after the brutal devaluation of Twitter.

Interestingly enough, we are probably seeing the plan set in motion already as Tesla's CEO announced that the company will halt Model S and Model X production at its Fremont facility and start producing the Optimus robot instead. Which in turn will likely use xAI's AI. How convenient.

Still, let's keep in mind that it's only rumors for now, and Tesla investors should be on the lookout.

Source 1 | Source 2