Are SpaceX and Tesla Hurtling Toward a Merger?

In 2026, speculation is growing about a potential merger between SpaceX and Tesla, with many investors considering it inevitable. Elon Musk initially dismissed the idea a decade ago, viewing the connection between the two firms as minimal. Alongside this, SpaceX is planning a record-breaking IPO and has recently acquired AI startup Cursor for $60 billion. Additionally, there's ongoing development of an AI data center satellite and the upcoming launch of Starship v3 that is crucial for the IPO. Notably, the leadership of Musk’s AI initiative, xAI, is also under discussion.

SpaceX:

Record-Breaking IPO

Tesla Merger Speculation

Cursor Acquisition

AI Data Center Satellite

Starship’s IPO Mission

Who Runs xAI?

BackForward

Markets

Explainer

FacebookXLinkedIn

EmailLink

Gift

Expand

Elon Musk and the Tesla fleet on the SpaceX Starship.Photo Illustration: Joel Arbaje/Bloomberg

FacebookXLinkedIn

EmailLink

GiftGift this article

Confidential tip?\ Send a tip to our reporters

Site feedback:\ Take our SurveyNew Window

FacebookXLinkedIn

EmailLink

Gift

By Sana Pashankar, Carmen Arroyo, Dana Hull, Kara Carlson, Liana Baker, and Jordan Fitzgerald

July 6, 2026 at 9:00 AM UTC

BookmarkSave

A decade ago, Elon Musk saw little reason for SpaceX and Tesla Inc. to merge, saying that the ties between the two companies were “really quite tenuous.”

Fast forward to 2026 and the question seems to be when, rather than if, a combination will happen. Longtime SpaceX and Tesla investors believe a merger is a foregone conclusion.

Read Original at Bloomberg.com →