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Musk Says Merging SpaceX and Tesla Would Be 'Good Idea,' but Shareholders Must Decide

Confirmed1 source · Oct 20, 2026

Elon Musk expressed support for formally consolidating SpaceX and Tesla during an earnings call, though he acknowledged the decision ultimately rests with shareholders.

Musk Says Merging SpaceX and Tesla Would Be 'Good Idea,' but Shareholders Must Decide
Image via Ars Technica

What happened

During SpaceX's third-quarter earnings call on Tuesday, Musk stated he believes merging SpaceX and Tesla would be beneficial. He noted that at the shareholder request of both companies, independent director committees have been formed to explore merger terms, but those committees have not yet reached agreement. Musk clarified he cannot participate directly in these discussions due to conflicts of interest. Musk cited potential synergies in superintelligence software, chip design, robotics, mass-to-orbit capabilities via Starmind constellation, and connectivity as rationale for consolidation.

Context

Both SpaceX and Tesla are described as transitioning from their original markets—space launch and automotive manufacturing respectively—into artificial intelligence development. A merger would represent unprecedented consolidation within Musk's business empire, which already expanded this year when SpaceX acquired Musk's AI firm xAI in February and SpaceX completed the largest initial public offering on record in June. The special committees' assessment of merger terms will determine whether such consolidation proceeds, making shareholder approval the decisive factor rather than Musk's personal preference.