Tesla and SpaceX could merge into a €3 trillion giant

Elon Musk is studying a deal that could transform two of his largest businesses into a single technology giant. Tesla and SpaceX have confirmed that they are evaluating a possible merger, in a transaction that would bring together companies with a combined valuation of approximately €3 trillion.

If completed, the merger would bring together areas as different as electric cars, space exploration, satellite communications, robotics and artificial intelligence under a single structure.

However, despite the excitement surrounding this possibility, the deal is far from being finalised. There are financial challenges, conflicts of interest and regulatory obstacles that could affect one of the largest corporate transactions of recent years.

Tesla and SpaceX study a historic merger

The possibility of a merger between Tesla and SpaceX moved beyond mere speculation on October 20, 2026, when Elon Musk confirmed that both companies had created special committees of independent directors to analyse the transaction.

The entrepreneur believes that the merger could bring strategic advantages, but acknowledges that there is still no definitive agreement.

In fact, Musk is not directly involved in the negotiations, as he holds leadership positions and stakes in both companies, representing a potential conflict of interest.

Together, Tesla and SpaceX are valued at around $3.5 trillion, approximately €3 trillion. This figure corresponds to the combined valuation of the companies and not the amount of an already agreed acquisition.

If the merger goes ahead, the new group could rank among the world’s most valuable companies, alongside technology giants such as Apple, Microsoft, Nvidia and Alphabet.

The scale of the transaction is also reflected in the activity of the two companies. According to analyst estimates cited by the Financial Times, combined revenue could reach $153 billion in 2026, approximately €136 billion.

The resulting group would also bring together more than 155,000 employees, creating a corporate structure with a significant presence across different technology sectors.

What do Tesla and SpaceX have in common?

At first glance, an electric car manufacturer and a company dedicated to space exploration appear to have very different activities.

However, the evolution of Elon Musk’s businesses has gradually brought the two companies closer together.

Tesla has moved beyond focusing its strategy exclusively on car production. Today, it also invests in autonomous driving systems, humanoid robots, artificial intelligence and energy storage.

SpaceX, meanwhile, has expanded its activities beyond rockets and space missions. The company develops the Starlink satellite communications network and has strengthened its presence in artificial intelligence through the integration of xAI, also founded by Elon Musk.

One of the clearest examples of this convergence is the Terafab project, developed in collaboration between Tesla and SpaceX.

The aim is to manufacture semiconductors for artificial intelligence systems, autonomous vehicles, Tesla robots and SpaceX’s technology infrastructure.

Another area of collaboration could be energy storage. Batteries developed by Tesla could help power data centres associated with SpaceX’s artificial intelligence projects.

There is also the Macrohard project, also known as Digital Optimus, which aims to use artificial intelligence to automate tasks performed on computers.

This growing convergence shows how the possible merger could have objectives far broader than simply bringing two companies under the same management.

Tesla Roadster brings the automotive world closer to space technology

One of the most surprising examples of collaboration between the two companies emerged with the presentation of a new version of the Tesla Roadster.

The two-seat electric sports car was presented with technology developed in collaboration with SpaceX, using thrusters that make it possible to perform manoeuvres that would be impossible in a conventional car.

During the demonstration described by the sources, the prototype managed to rise above other vehicles and perform movements in the air.

Although this technology is still associated with the development of the model, it represents an example of how knowledge acquired in the aerospace industry could find applications in the automotive sector.

For Tesla, this collaboration makes it possible to explore new technological solutions and strengthen its differentiation in an increasingly competitive electric vehicle market.

A merger with financial risks and regulatory challenges

Despite the potential advantages, combining Tesla and SpaceX also raises important questions.

Both companies are involved in projects that require very high levels of investment, particularly in artificial intelligence, semiconductors, data centres and space infrastructure.

According to estimates cited by the Financial Times, the companies’ combined free cash flow could be negative by at least $54 billion in 2026.

This means that, despite high revenues, the financial resources generated by operations may not be sufficient to support all planned investments.

For Tesla shareholders, one of the main concerns will be understanding to what extent the car manufacturer’s resources could end up financing SpaceX projects.

Another issue relates to control of the companies. Elon Musk owns approximately 20% of Tesla but controls around 84% of SpaceX’s voting rights through a shareholding structure with differentiated voting rights.

A possible merger could significantly alter the distribution of decision-making power in the new group, depending on the terms negotiated.

There are also regulatory obstacles. SpaceX holds contracts with NASA and the US Armed Forces, while Tesla has a highly significant industrial and commercial presence in China.

Integrating these businesses could raise concerns related to national security, technology protection and trade relations between the United States and China.

Any agreement will therefore have to overcome not only negotiations between the companies, but also approval processes involving shareholders and the relevant authorities.

What could change for Tesla and the automotive sector?

A possible merger between Tesla and SpaceX could represent a major transformation in the way the car manufacturer develops its business.

The integration of artificial intelligence, robotics, energy storage and aerospace technologies could accelerate the development of new products and create opportunities for collaboration between different engineering teams.

At the same time, the transaction could bring Tesla even closer to a technology-focused business model, reducing the relative importance of automotive production within the group’s overall strategy.

However, the merger remains only a possibility under consideration. The companies have not yet reached an agreement and there is no guarantee that the transaction will go ahead.

The decision will depend above all on the ability to demonstrate to shareholders that the combination could generate sufficient benefits to justify the costs and risks involved.

Regardless of the outcome, the growing relationship between Tesla and SpaceX demonstrates how the boundaries between the automotive industry, artificial intelligence and space technology are becoming increasingly blurred.

And if Elon Musk succeeds in bringing the two businesses together, one of the world’s largest technology groups could emerge, with influence extending far beyond the electric car market.

Sources: Razão Automóvel, Expresso