Speculation around a possible merger between SpaceX and Tesla has intensified as Elon Musk prepares to take another trillion-dollar company to the public market.

SpaceX is expected to begin trading on the Nasdaq in just over two weeks after securing a private valuation of $1.25 trillion earlier this year through its merger with xAI, Musk's artificial intelligence company. Tesla's market capitalization currently stands at roughly $1.6 trillion.

The renewed discussion comes as both companies deepen their focus on artificial intelligence, while also continuing years of collaboration involving shared resources, overlapping leadership and operational partnerships.

Internal discussions and growing expectations

According to people familiar with the discussions, Musk has spoken with colleagues about the possibility of eventually combining Tesla and SpaceX into a single entity. Sources said the conversations remain sensitive, but the topic has increasingly become part of broader discussions around the future direction of Musk's businesses.

​Elon Musk prepares to take another trillion-dollar company to the public market While Tesla and SpaceX operate in very different industries, the companies are increasingly connected through their AI ambitions. Both require advanced computing systems, significant energy resources and large-scale infrastructure to support future AI development.

More than three-quarters of SpaceX's $10.1 billion capital expenditure during the first quarter was linked to AI-related investments. Tesla, meanwhile, said in its latest earnings report that capital expenditure is expected to nearly triple this year and exceed $25 billion.

Shared leadership and operational overlap

Musk is expected to begin SpaceX's roadshow next week as the company prepares to pitch investors on the future of its 24-year-old business empire. SpaceX now includes its reusable rocket operations, Starlink satellite internet services and xAI, which also includes social media platform X, formerly Twitter. The company additionally has an agreement in place to acquire AI coding startup Cursor for $60 billion.

The links between Tesla and SpaceX extend well beyond strategy discussions. The companies have spent years sharing personnel, leadership and operational resources.

​Musk has spoken with colleagues about the possibility of eventually combining Tesla and SpaceX Musk serves on the boards of both companies alongside venture capitalist Ira Ehrenpreis, founder of DBL Partners. Musk's brother Kimbal currently sits on Tesla's board and previously served as a SpaceX director. SpaceX board members Antonio Gracias and Steve Jurvetson also previously held positions on Tesla's board.

Earlier this year, Tesla disclosed a $2 billion investment in xAI. Following SpaceX's merger with xAI, those shares became part of SpaceX holdings.

SpaceX also stated in its prospectus that it purchased $697 million worth of Tesla Megapack battery storage systems during 2024 and 2025. The systems are being used to power xAI-operated data centers surrounding the company's Colossus facilities in Memphis, Tennessee.

The filing further revealed that SpaceX spent $131 million on Tesla Cybertrucks in 2025 at the manufacturer's suggested retail price.

Previous transactions between the companies included Tesla supplying solar equipment and vehicle components to SpaceX, Tesla using SpaceX private aircraft and Tesla relying on SpaceX to help develop a special alloy for the Cybertruck.

Suppliers have also increasingly viewed Musk's companies as a single large customer. In 2024, Nvidia redirected a $500 million GPU order from Tesla to xAI at Musk's request.

Governance concerns and financial implications

Legal experts believe a merger between Tesla and SpaceX would likely avoid major antitrust concerns. However, the structure of such a deal could raise important questions among shareholders in both companies.

Among the issues expected to create debate are which company would become the parent entity, how a stock swap would be structured and who would determine the valuation terms.

Musk is unlikely to face significant resistance from SpaceX's board because he controls roughly 85% of the company's voting power. In its prospectus, SpaceX identified itself as a "controlled company," noting that this status allows exceptions from certain Nasdaq governance requirements. The filing also stated that Class A shareholders would not receive the same governance protections available at companies subject to all Nasdaq corporate governance standards.

A merger could also carry major financial implications for Musk personally.

SpaceX has tied Musk's compensation incentives to two long-term milestones: achieving a $7.5 trillion market valuation and establishing a Mars colony with at least one million inhabitants.

​Musk is expected to begin SpaceXs roadshow next week Tesla shareholders, meanwhile, approved a compensation package late last year consisting of 12 payout tranches connected to market capitalization growth and operational targets.

As SpaceX moves closer to its public market debut, speculation over how closely Musk's companies could eventually operate together is likely to continue growing.