Why Elon Musk is considering a mega-merger of SpaceX and Tesla
Elon Musk is considering a mega-merger between his trillion-dollar companies Tesla and SpaceX, which would create the largest corporate merger in history. Special committees have been formed to evaluate the potential combination of Tesla's electric vehicles and AI technology with SpaceX's rocketry and satellite communications.
Why it matters
Combining Tesla and SpaceX would reshape the global tech and automotive landscapes, centralizing unprecedented resources toward Musk's long-term ambitions like colonizing Mars.
Image source, Getty Images/Reuters By Osmond Chia Business reporter Published 21 October 2026, 05:13 BST Updated 6 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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