Elon Musk is reportedly considering a merger between SpaceX and either Tesla or xAI as the rocket company prepares for its anticipated initial public offering (IPO) later this year. Reports from Reuters indicate that discussions are underway, with a potential merger aimed at enhancing SpaceX’s ambitious plans to launch data centers into space.
Following the initial report, Bloomberg also revealed that SpaceX is evaluating a merger with Tesla or potentially pursuing an alternative combination with xAI. The specific details regarding the timing and valuation of any merger remain unclear. However, sources suggest that SpaceX is eyeing a possible IPO date around mid-June, as reported by the Financial Times.
The implications of such a merger are significant, particularly considering the scrutiny faced by xAI. If a merger occurs, SpaceX would integrate with a company associated with Grok, which is currently under investigation in the European Union for issues related to the use of sexualized deepfakes.
This potential merger would not be the first collaboration between Musk’s ventures. Recently, Tesla announced plans to invest approximately $2 billion in xAI. Furthermore, Tesla reportedly sold $430 million worth of backup batteries to xAI in 2025, demonstrating a growing financial relationship between the two companies.
While SpaceX, Tesla, and xAI did not respond to requests for comment from various media outlets, the developments suggest a strategic alignment among Musk’s companies in aerospace, social media, and artificial intelligence. The merger discussions are part of Musk’s broader vision, which has continually sought to push the boundaries of technology and innovation.
As the details surrounding the potential merger evolve, industry observers will be watching closely. The outcomes could reshape the landscape of both the aerospace and technology sectors, especially as SpaceX prepares for its public debut later this year.
In summary, the discussions between SpaceX and xAI or Tesla could signal a transformative shift for Musk’s portfolio as he navigates the complexities of the aerospace market and the rapidly changing technology landscape. The financial implications and the strategic benefits of such a merger will likely be a focal point as the situation develops.
