World’s richest man Elon Musk has revealed that special committees at SpaceX and Tesla are actively evaluating a potential mega-merger, signaling a historic consolidation that market analysts estimate could create a combined enterprise valued at nearly $5 trillion.
The announcement came during SpaceX’s Q3 earnings call on Tuesday evening, where the aerospace company reported revenue of $14.6 billion—a 161 per cent increase year-over-year—and net income of $4.4 billion. Following the revelation, SpaceX shares jumped nearly 10 per cent to $162.41 in morning trading on Wednesday, while Tesla shares rose 3.8 per cent to $387.72.
The stock rally pushed Musk’s net worth past $1 trillion—surging by over $88 billion in early trading—restoring his status as the world’s sole trillionaire before settling near $989 billion by the market close.
Outlining the vision behind bringing the electric vehicle giant and aerospace company together, Musk explained that combining the firms is necessary to accelerate a future built around artificial intelligence, automated manufacturing, and orbital infrastructure.
“There’s a lot to be gained from cooperating on developing super intelligence software, chip design, the Terafab obviously, robotics, mass to orbit with the Starmind constellation,” Musk said during the earnings call.
Tesla has increasingly shifted focus from traditional motor vehicles toward autonomous mobility, such as robotaxis and its humanoid robot, Optimus. The strategic synergy aims to link Tesla’s hardware with xAI’s software (the AI firm behind Grok, owned by SpaceX) and the planned “Terafab” semiconductor facility designed to manufacture chips for both ventures.
Wall Street reacts: A historic $5 trillion union
Wall Street analysts expressed strong optimism regarding the proposal, noting that unifying Musk’s ecosystem under a single umbrella resolves governance conflicts and streamlines shared compute resources.
Dan Ives, Senior Managing Director at investment firm Yorkville Ives & Co., described the potential transaction as the largest corporate deal in history.
“The merger would likely be valued at close to $5 trillion,” Ives said. “For the merger to get passed by shareholders, it would have to be a higher price for Tesla—likely in the $500 to $550 per share range in our view.”
“Combining the businesses makes sense for a number of strategic AI and data-driven reasons, and this is the right move for Musk,” Ives added.
Despite intense market excitement, both companies cautioned that discussions remain preliminary and no definitive merger agreement has been executed. Special board committees will continue reviewing valuation frameworks and shareholder protections before presenting a formal proposal to regulators and investors.
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