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Wed, 21 Oct 2026

Wed, 21 Oct 2026 Why does Elon Musk want to merge Tesla and SpaceX?

Musk, who is CEO of both companies, says there is "a lot to be gained" from the merger, which would be the biggest in history.
Elon Musk, CEO of Tesla and SpaceX, has expressed interest in merging the two companies, which would create the largest merger in history. Musk believes that combining Tesla's electric cars, robots, and self-driving technology with SpaceX's rockets, data centers, satellites, and telecommunications operations could be beneficial for both businesses. According to sources, special committees have been formed to assess a potential deal, although no agreement has been reached yet. The merger would require shareholder approval from Tesla investors, who would need to vote in favor of the combination by a threshold of 50%. Industry experts say that combining the two companies' technology capabilities could lead to more capable vehicles and potentially attract new customers. However, it is unclear how the merger would affect Tesla's vehicle lineup and whether customers can expect significant changes in the near future. Musk has been consolidating his businesses in recent years, with SpaceX acquiring xAI and X (formerly Twitter) before going public. The potential merger could also give Musk greater voting control over a combined company, which could be beneficial for his AI strategy. However, some experts have raised concerns about the regulatory implications of a Tesla-SpaceX merger, particularly if Democrats gain more seats in the US midterm elections next month.