SpaceX mulling merger with either xAI or Tesla ahead of IPO - reports

30th Jan 2026 10:27

(Sharecast News) - Elon Musk is considering merging SpaceX with either Tesla Motors or xAI, it was reported on Friday, as the billionaire looks to consolidate his sprawling tech empire.

Earlier this week, the Financial Times reported that Musk was exploring floating the rocket maker in a $1.5trn initial public offering in June, with the timing slated to coincide with both a planetary alignment and his birthday.

Jupiter and Venus are due to appear in a conjunction in mid-June, for the first time in three years. Musk will turn 55 shortly afterwards, on 28 June.

According to a report by Reuters on Friday, however, the rocket specialist is also mulling a tie-up with the artificial intelligence firm ahead of the potential initial public offering.

A tie-up between SpaceX and xAI would bring together Musk's rockets, Starlink satellites, the X social media platform and Grok chatbot.

Bloomberg, meanwhile, reported that a tie-up with electric car manufacturer Tesla was also being considered.

Gene Munster, managing partner at xAI investor Deepwater Asset Management, told Reuters: "I think it's highly likely that [xAI] ends up with one of the two parties.

"What's important for Elon is to have a massive vision that's way out there that he's early on."

Munster is also a shareholder is Tesla.

Dan Coatsworth, head of markets at AJ Bell, said a tie up with either company was "not as absurd" as it might first sound.

"They all have technology at the heart of what they do, and AI is prevalent in their growth plans. Musk is constantly dashing between his plethora of companies and having them as a single corporate entity could help him to focus more.

"However, there's also a feeling that this would be Musk empire building. Everything under one roof creates the idea of a Musk Metropolis: a vision of the future with one man and a white cat wanting to rule the world."