Elon Musk's ultimate business empire may be taking shape. According to CNBC on May 27, 2026, Musk is actively weighing a merger between Tesla and SpaceX, with the latter expected to IPO on Nasdaq under ticker SPCX. The idea has been an open secret inside Tesla, and the potential deal is heating up as SpaceX prepares to go public.
AI and Compute: The Catalyst
The two companies already share engineering talent and materials. SpaceX buys Tesla's Megapack batteries and Cybertrucks, while Tesla uses SpaceX-developed alloys. But the biggest driver is AI and compute costs: over 75% of SpaceX's Q1 capital expenditure was AI-related; Tesla's 2026 capex is projected to exceed $25 billion. After SpaceX recently absorbed Musk's AI startup xAI, folding Tesla into the mix would consolidate compute, data, and talent under one roof.
Wall Street Sees a Bitcoin Whale
Wedbush analyst Dan Ives pegs the odds of a post-IPO merger at 80%. The resulting mega-entity would span autonomous driving, aerospace, robotics, and Starlink. For crypto markets, the new firm would inherit about 30,000 Bitcoin from both balance sheets, instantly becoming one of the top five public corporate holders of BTC.
Three Major Hurdles
The road to merger is littered with obstacles. Valuation and stock swap is the first: Tesla is valued at roughly $1.6 trillion, while SpaceX's IPO valuation ranges from $1.25 to $1.75 trillion. Determining the exchange ratio and which entity survives is a financial maze. Second, minority shareholders like Ron Baron are wary of self-dealing and potential lawsuits. Finally, geopolitical scrutiny looms large: SpaceX holds sensitive NASA and defense contracts, while Tesla relies on China's supply chain and market. A merger would inevitably draw antitrust and national security reviews.
The plan remains in early discussion, with Musk yet to confirm publicly.