SpaceX and Tesla may be publicly inseparable from the outsized personality of Elon Musk, the CEO of both firms. But legally and technically they are separate businesses. A change might be imminent, as Musk is looking at a merger of his two kingdoms. The move could consolidate his power and buttress his megariches.
‘Elon Inc.’
Musk announced last week that the two companies have formed committees to explore a deal to create a conglomerate with dealings in rockets, cars and artificial intelligence, said Axios. “I think it would be a good idea," he said on an earnings call with reporters, per the outlet. (SpaceX and Tesla are already collaborating on AI chip production.) The combined enterprise would be “massive,” said Axios. The companies currently have a combined capitalization of more than $3.5 trillion.
The SpaceX-Tesla combo would be the “world’s largest ever merger,” said the Financial Times. The combined firm would be a “new type of 21st-century conglomerate” centered around AI and a “leading position in industries ranging from space exploration to robotics.” There has “never been a company like it of any scale,” said analyst Gene Munster to FT.
The merger would “create a de facto Elon Inc.,” said The New York Times. The alliance has also “raised concerns” from policymakers and critics who believe the world’s richest man has “already amassed too much power.” The merger would give Musk official “power over an increasing slice of the world’s economy,” said Jill Fisch, a business law professor at the University of Pennsylvania, to Marketplace.
The Trump factor
The proposal comes at a moment when Musk has “regained access to the White House” after a falling-out with President Donald Trump, said Bloomberg. The advantage is not “guaranteed to last,” though. As such, a push is on to officially announce a deal in the first half of 2027 “so that it closes during this administration” before a “potentially less-accommodating political and financial environment takes hold.”
A would-be power shift may explain Musk’s gargantuan spending on the 2026 midterm election. His giving to GOP candidates has “powered past the $400 million mark as of mid-October,” said CNN.