Elon Musk’s aerospace company SpaceX is considering a potential merger with electric vehicle maker Tesla, according to a Bloomberg News report citing people familiar with the matter. The discussions are said to be exploratory, with alternative options also under review, including a possible combination with artificial intelligence firm xAI.
The report follows earlier information that SpaceX and xAI have been discussing a merger ahead of a major public offering later this year. Such a move could bring together Musk’s businesses spanning rockets, Starlink satellites, social media platform X, and AI products under a more unified structure. Tesla shares rose about 3% in after-hours trading following the Bloomberg report.
According to people cited by Bloomberg, some investors have encouraged a tie-up between SpaceX and Tesla, arguing it could unlock strategic and financial synergies. Any potential deal could also attract strong interest from infrastructure funds and Middle Eastern sovereign wealth investors. Neither SpaceX nor Tesla immediately commented on the report.
