SpaceX-Tesla Merger Talk Reignites Ahead of $1.25 Trillion Nasdaq Debut
Updated
Updated · CNBC · May 26
SpaceX-Tesla Merger Talk Reignites Ahead of $1.25 Trillion Nasdaq Debut
5 articles · Updated · CNBC · May 26
SpaceX is expected to begin trading on Nasdaq in just over two weeks, reviving internal and investor talk that Elon Musk could eventually combine the newly public company with Tesla.
AI has become the clearest overlap: more than three-quarters of SpaceX’s $10.1 billion first-quarter capex went to AI, while Tesla said annual capex will roughly triple to above $25 billion.
The companies already share assets, staff and spending—Tesla invested $2 billion in xAI before its merger into SpaceX, and SpaceX disclosed $697 million of Tesla Megapack purchases plus $131 million of Cybertrucks.
Any tie-up would likely face fewer antitrust hurdles than governance and valuation questions, including exchange ratios and parent-company structure, while Musk controls 85% of SpaceX voting power.
A combined group would unite two companies now valued around $1.25 trillion and $1.6 trillion, potentially strengthening Musk’s push to fund AI infrastructure and broader space ambitions.
Is the Tesla-SpaceX merger a strategic AI powerhouse or a bailout for the cash-burning xAI at Tesla shareholders' expense?
As Musk consolidates his empire, what governance risks arise when one CEO controls a combined Tesla-SpaceX with near-total voting power?
Can Musk's vision for orbital data centers truly create the world's lowest-cost AI compute and dominate the industry?
SpaceX-xAI Merger Creates $1.25 Trillion Tech Giant: IPO, Tesla Ties, and the Future of the Muskonomy
Overview
In February 2026, Elon Musk merged SpaceX and xAI, creating the world’s most valuable private enterprise valued at about $1.25 trillion. This move further strengthened the 'Muskonomy,' Musk’s interconnected business ecosystem. The new SpaceX-xAI entity is now preparing for a major IPO, aiming for a Nasdaq debut as early as June 12, 2026, with an expected valuation between $1.25 trillion and $1.75 trillion. However, some analysts are skeptical about the higher valuation, noting it depends on ambitious Starlink subscriber growth projections. This consolidation marks a bold step in Musk’s vision for integrated innovation on and off Earth.