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Elon Musk May Merge His Companies
All the Musk money // Illustration by Kate Walker
Elon Musk is reportedly considering merging Tesla or xAI — or both — with SpaceX ahead of the space startup’s blockbuster IPO this year.
Why It Launches: SpaceX’s IPO alone was expected to be one of the largest ever — and potentially the largest American IPO to date. But a merger with either Tesla or xAI would likely send the company’s valuation skyrocketing… and have Wall Street firms, Middle Eastern sovereign wealth funds, and every retailer trader doing whatever they can to get in on the action.
Behind The Idea: Elon Musk, the richest man in the world, would really like to be CEO of the world’s biggest company.
SpaceX, the biggest private company in the world, is expected to reach a $1.5 trillion valuation when it goes public. Meanwhile, Tesla has a market cap of $1.35 trillion, and xAI (which owns X) is valued at $250 billion.
Any merger between the companies is expected to be an all-stock exchange (similar to how xAI acquired X), and SpaceX and xAI have set up corporate entities in Nevada to help smooth the way for a deal.
Musk already moves significant sums between the companies — both SpaceX and Tesla have invested $2 billion in xAI.
Final Deal: Other than the enormous sums involved, Musk hopes a merger between all three companies could supercharge their biggest ambitions — including putting AI data centers in space, integrating Grok into SpaceX’s military contracts, and sending Optimus robots to colonize the Moon.
Is it just us, or does that feel like something out of a Bond villain’s playbook?
The Future: Musk says he’d like SpaceX’s IPO to coincide with a planetary alignment in June. While that may be an ambitious timeline, we wouldn’t be surprised if he does announce one of these mega-mergers around then.
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Today’s email was written by David Vendrell.
Edited by Nick Comney. Polled and Copy-edited by Kait Cunniff.
Published by Darline Salazar.