Elon Musk signals Tesla and SpaceX could merge. Here's why he thinks it's a good idea.

October 21, 2026 / 11:29 AM EDT / CBS News

Elon Musk signals Tesla and SpaceX could merge. Here's why he thinks it's a good idea.

TL;DR

  • SpaceX and Tesla are exploring a potential merger at the request of shareholders.
  • The combined company could be valued at close to $5 trillion.
  • The strategic rationale involves developing artificial intelligence, chip design, robotics, and mass-to-orbit capabilities.
  • Tesla is shifting focus towards autonomous products like self-driving taxis and humanoid robots (Optimus).
  • SpaceX's AI unit, xAI, created Grok, and a planned Terafab chip factory would support both companies.
  • A significant hurdle is obtaining a majority vote from all Tesla shareholders.
  • One analyst estimates an 80-90% chance of the merger happening by the end of 2027.