Musk's firms: Merger ahead?
SpaceX President hints at potential Tesla merger after IPO, citing shared goals
Key Points
Shotwell gave a more granular, operational list for why she isn’t pursuing a deal now—saying she is “focused on ‘keeping the lights on’… keeping rockets in production, flying rockets, flying people, getting to the International Space Station, and critically providing broadband to folks that don’t have access.’”
The IPO context included trading specifics: SpaceX began trading under the ticker “SPCX” after raising $75 billion at about a $1.77 trillion valuation—described as the largest public offering on record—and Shotwell linked future dealmaking to market timing and the AI boom (“M&A is in the future, especially when you look at the AI world”).
CNBC/industry framing added an explanation for why merger talk accelerated immediately after listing: as Article 4 put it, “Public stock is merger currency,” meaning SpaceX can use shares priced daily to fund acquisitions.
Newer disclosed cross-spending sharpened the picture of existing interdependence: SpaceX’s IPO filing cited that SpaceX spent $131 million on Cybertrucks in 2025, while Tesla sold roughly $890 million worth of vehicles and batteries to SpaceX and its xAI unit since 2023.
On the governance hurdle, Article 4 specified structural concerns: it noted Musk controls “more than 80 per cent of SpaceX’s voting power,” with “final say even over his own removal,” and warned that a merger would effectively hand him even more consolidated control—one reason Westly called governance a “hard” part of any combination.
SpaceX President Gwynne Shotwell refused to rule out a future merger with Tesla on the same day SpaceX began trading on the Nasdaq, telling CNBC the two companies share overlapping goals and "synergies" that could one day make combining them worthwhile. SpaceX debuted under the ticker SPCX at a valuation of roughly $1.77 trillion — the largest public offering in history — after raising $75 billion.
Shotwell stopped short of calling a deal imminent. She said her focus remains on "keeping rockets in production, flying rockets, flying people, getting to the International Space Station, and critically providing broadband to folks that don't have access." But she added: "M&A is in the future, especially when you look at the AI world," according to CNBC.
SpaceX's IPO Hands Musk a New Merger Tool
Before June 2026, SpaceX was private. That made a formal merger with Tesla nearly impossible to structure. Going public changed that. Analysts note that "public stock is merger currency" — meaning SpaceX can now use its shares, priced daily on the open market, to fund an all-stock deal without spending cash, according to The Next Web.
SpaceX reinforced that point in a filing after its IPO. The document included a provision allowing the company to issue "significant equity tranches" to fund "strategic future transactions," according to Yahoo Finance. Tesla stock rose 4.2% the day Shotwell made her comments, as investors priced in the potential upside of a combined company.
Deep Ties Between the Two Companies Already Exist
The two companies are far from strangers. SpaceX spent $131 million on Tesla Cybertrucks in 2025 for use at Starbase and Cape Canaveral. Tesla, in turn, sold roughly $890 million worth of vehicles and batteries to SpaceX and Musk's xAI unit since 2023, according to Tesla North.
In January 2026, the companies launched "Project Terafab" — a joint venture to build custom AI chips for both Tesla's Optimus robots and SpaceX's next-generation Starship navigation systems. Analysts say Starlink's global connectivity data and Tesla's real-world driving data could form the backbone of a powerful AI system if the two companies merge.
Ex-Tesla Board Member Calls Merger 'Absolutely Likely'
Former Tesla board member Steve Westly told CNBC he believes a combination is "absolutely likely." He pointed to shared AI goals as the main driver. A merged company spanning electric vehicles, rockets, satellites, and AI chips could be worth $4 trillion to $5 trillion — making it the largest company in the world.
But Westly called governance the "hard part." Musk controls more than 80% of SpaceX's voting power and has "final say even over his own removal," according to IPO filings cited by The Next Web. Critics warn a merger would hand Musk even more consolidated control and could squeeze out minority Tesla shareholders. Wall Street analysts remain split on the timing and odds of a deal.
Shotwell Keeps Focus on Rockets, Not Boardrooms
Despite the merger buzz, Shotwell's message was clear: a deal is not happening now. She listed her priorities in order — rockets, crewed spaceflight, the International Space Station, and Starlink broadband. She framed any future M&A move as tied to market conditions and the AI boom, not near-term planning, according to CNBC.
SpaceX faces a packed schedule. A 2027 Starship launch window toward Mars looms, along with ongoing ISS servicing missions and the rollout of Starlink V3 satellites. Analysts note that merger talks could distract from those goals. For now, Shotwell is betting that keeping the lights on is worth more than any deal, according to Yahoo Finance.
Sentiment
Mostly PositivePublishers
24
Articles
21
Reach
45
