Elon Musk’s SpaceX is reportedly exploring potential merger and consolidation options with Tesla Inc. (NASDAQ: TSLA) or artificial intelligence startup xAI, according to a Bloomberg report citing people familiar with the discussions. The news has sparked renewed investor interest across Musk’s business ecosystem, particularly as speculation grows around SpaceX’s long-anticipated public listing.
Following the report, Tesla shares rose roughly 4% in after-hours trading on Thursday. This rebound came after the stock had fallen about 3.5% during regular trading, weighed down by investor reaction to Tesla’s fourth-quarter earnings results released a day earlier. Market participants appear to be reacting positively to the possibility of closer strategic alignment between Musk’s companies.
Sources said SpaceX has discussed the feasibility of combining with Tesla, a move some investors believe could unlock synergies across electric vehicles, energy, robotics, and space-based technologies. While no formal proposal has been made, the idea has gained traction among certain stakeholders who view consolidation as a way to streamline Musk’s sprawling business empire.
Separately, SpaceX is also examining a potential tie-up with xAI, Musk’s artificial intelligence company, particularly ahead of a possible initial public offering. Some sources indicated that one scenario under consideration could involve exchanging xAI shares for SpaceX equity. Reuters previously reported on similar discussions involving a SpaceX-xAI transaction.
These potential merger or partnership moves could attract significant interest from global infrastructure funds and Middle Eastern sovereign wealth investors, according to people familiar with the matter. However, any deal would likely require substantial financing and face complex regulatory and governance considerations.
The discussions remain at an early and exploratory stage, and no final decisions have been made. Sources cautioned that SpaceX, Tesla, and xAI could ultimately remain independent entities. Recent reports have also suggested that SpaceX may be moving closer to an IPO, adding another layer of uncertainty to the situation.
Representatives for Elon Musk, SpaceX, Tesla, and xAI have not publicly commented on the reported talks.


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