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
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.