We previewed Tesla’s radical new flying Roadster last Thursday, and although I wrote that it may not be everyone’s first choice for a practical car anytime soon, the amazing technological advances it showcased have massive implications for our future. (See: Here's Why Elon Musk's Crazy Sci-Fi Flying Tesla Roadster Is Actually Important — Really Important.)
Guess who helped with some of the technology? One of the other companies where multi-billionaire Musk also serves as the CEO: SpaceX. The rocket and aerospace pioneer has shown plenty of mind-blowing breakthroughs of its own and has turned reusable space vehicles into a reality while bringing high-speed internet access to some of the world's most remote places with Starlink.
What if the two companies were…One?
That’s exactly what Musk is pushing for, and it’s generally proven to be a bad idea to bet against him. During a SpaceX quarterly earnings call with investors and analysts Tuesday, he said the time for convergence may have arrived:
Elon Musk today on a potential merger between SpaceX and Tesla:
— Sawyer Merritt (@SawyerMerritt) October 20, 2026
"Both Tesla and SpaceX have formed special committees at the request of shareholders. Because I'm a conflicted party I can't be in on these discussions. I don't think we should assume that a merger is a certainty.… pic.twitter.com/Aerc1PxA8P
"Both Tesla and SpaceX have formed special committees at the request of shareholders. Because I'm a conflicted party I can't be in on these discussions. I don't think we should assume that a merger is a certainty. Do I think it would be a good idea? Yes. But at the end of the day, shareholders have to be supportive of this. The special committees have not reached an agreement on any transaction, and it doesn't mean they will, but there is a lot of be gained from cooperating on SI, chip design, robots, mass or orbit, connectivity. I think it would be a good idea."
California Attorney General Rob Bonta, who did everything in his power to derail the Paramount-Warner Bros. merger, must be hopping mad, but since Tesla ditched the Golden State for Texas in 2021 and SpaceX did the same in 2024, he may not have much say in the matter.
Musk won’t be able to directly decide on the path forward, but we can be sure that his opinion is widely noted considering he’s used his wiles to become the richest man in the world:
Musk, who leads both companies, has previously entertained the idea of combining the businesses, pointing to growing overlap between them.
Following SpaceX's quarterly earnings report and Musk's comments during a conference call with investors Tuesday, shares of SpaceX jumped as much as 8% in extended trading.
"I think it would be a good idea, but it's really up to the special committees of both companies," Musk said. "Because I'm a conflicted party, I can't actually be in the discussions of the special committees."
If SpaceX on its own continues to thrive — and if there’s a merger, the new company does too — it could be very, very good for the children of America. As RedState’s Kyle Becker reported Monday, Musk is planning to share at least some of his immense wealth:
Next year, I will give one of my SpaceX shares to every kid in America.
— Elon Musk (@elonmusk) October 19, 2026
This will be the first of many.
If the companies do marry, the new entity would instantly become one of the biggest corporations in history — although not the biggest, at least not right away. A combined SpaceX and Tesla would have an approximate market capitalization of roughly $3.2 to $3.5 trillion, but AI chipmaker/designer Nvidia would remain the world's most valuable company with a market capitalization well over $5 trillion. Microsoft, Apple, and Alphabet are all right there in the running as well.
If I’m Nvidia, though, and this merger happens, I’d suddenly be very nervous that my #1 spot won’t be lasting for very long.
Now we just need a name. SpaceTeslaX? SpaceTex? TeslaX Goes to Space? TexX? The possibilities are endless.
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