Add another name to the “Musk megamerger” camp. Wedbush analyst Dan Ives says there is a growing chance Tesla $TSLA ( ▲ 0.04% ) could one day merge with SpaceX and xAI, as Elon Musk pulls his companies into a single, massive AI ecosystem spanning Earth and space.
It sounds wild. It also sounds very on-brand.
One AI Empire, Different Frontiers
Ives argues Musk’s long-term vision is about controlling more of the AI stack end to end. Tesla $TSLA is pushing into autonomy, AI training, and humanoid robots. SpaceX and xAI are tackling satellite networks, launch systems, and eventually space-based computing.
Different industries, same destination: massive-scale AI powered by vertically integrated infrastructure. Ives believes Musk could move to “combine forces and technologies” over the next year and a half in pursuit of what he calls the “holy grail” of AI dominance.
In that world, cars, rockets, satellites, and data centers all become parts of one giant system.
This Would Not Be Musk’s First Mashup
Musk has a history of stitching his ventures together. xAI merged with X. Tesla $TSLA previously merged with SolarCity. His companies already share talent, technology, and commercial relationships behind the scenes.
Given how closely aligned Tesla and SpaceX’s missions and engineering philosophies already are, a future corporate tie-up would look less like a sudden pivot and more like formalizing what is already happening informally.
Big Vision, Big Questions
A merger would create one of the most unusual corporate structures ever seen, blending automotive, aerospace, telecom, and AI under one roof. It would also raise big questions about governance, valuation, and regulatory oversight.
But from a strategic lens, the idea fits Musk’s pattern. Build giant, mission-driven companies. Integrate everything. Then, when the pieces start looking like parts of the same machine, consider making it official.