Tesla and SpaceX: Why does Elon Musk want to merge the companies?
Elon Musk is considering a potential merger between Tesla and SpaceX, which would combine two trillion-dollar technology empires into the largest corporate merger ever. While special committees have been formed to assess the deal, no final agreement has been reached.
Why it matters
Combining Tesla and SpaceX could heavily reshape the global technology, automotive, and aerospace industries, aligning electric vehicles, AI, and interplanetary space travel.
Image source, Getty Images/Reuters By Osmond Chia Business reporter Published 21 October 2026, 05:13 BST Updated 9 hours ago Elon Musk has spent years building Tesla and SpaceX into a pair of trillion-dollar technology empires. Now, he is considering bringing them together .
Asked on Tuesday whether a merger would be a good idea, Musk was clear: "Yes."
The prospect is more than hypothetical. Musk said special committees have been formed to assess a potential deal, although he stressed that there is no guarantee a merger will happen and that nothing has been agreed.
With Tesla valued at roughly $1.5 trillion (£1.1 trillion) and SpaceX at $2 trillion, a combination of the two companies would mark the largest merger ever.
Any deal would also need shareholder backing. But Musk said he saw "a lot to be gained" in bringing the businesses together.
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